Legal Preventive Measures Of Real Estate Credit Risks In China From The View Of Real Estate Bubble Burst In Japan

n recent years, with the rapid and continuous development of real estate marketin China as well as the improvement of living standards, one can not help but be lostin contemplation seeing the soaring house price and the inadequacies of credit riskpreventive measures go behind. Through the observation of situations of real estatemarket of last century in Japan, it is shown that the real estate market in China now issimilar to that of Japan in last century. The inadequacies of real estate credit riskpreventive measures not only threaten the financial security of China, but also bringserious dangers to the enrichment of national economy; therefore, it is of practicalsignificance to strengthen the construction of real estate credit risk preventive systemin China.Besides the sections of introduction and conclusion, the main body of this articleis composed of four parts:The first part reveals the significance of the prevention of real estate credit risksin China from the view of real estate bubble in Japan. This part firstly introduces thecauses and influences of real estate bubble burst in Japan on economy, politics andpeople’s lives, and then demonstrates the similarities between current situations inChina and situations of Japan at that time from the perspectives of the blind lending ofthe financial institutions, the loose inspection of loan reviews, the appreciationpressure of RMB, the non-obvious regulatory effects and etc. based on which itfurther points out the importance of strengthening the prevention of real estate creditrisks.The second part shows the general principles of real estate credit risks. This partanalyzes the concept, features, types of real estate credit, as well as the definition andforms of real estate credit risks, and further investigates the causes of real estate creditrisks.The third part is concerned with the problems in the preventive systems of realestate credit risks of Commercial Banks in China. This part explores the existingproblems of the prevention of real estate credit risks in China from four aspectsincluding: the imperfection of internal risk control mechanism in commercial banks,the deficiencies of external risk control, the limitations of industry self-regulation, andthe insufficiencies of corresponding legal systems. The fourth part proposes legal countermeasures for reinforcing the prevention of realestate credit risks of Commercial Banks in China. This part suggests the perfection ofthe preventive system of real estate credit risks of Commercial Banks in China fromfive angles which are the establishment of sound social credit system, theintensification of internal controls, the improvement of external supervisions, thereinforcement of industry self-regulation, and the perfection of corresponding legalsystems.