Chinese Real Estate Credit Risk Of Commercial Banks

With the continuous development of the economy and society, in a variety of positive measures to stimulate, for instance, Chinese housing reform gradually improved, stable and sustainable development of national economy, accelerating the urbanization process and increasingly vigorous demolition projects, the real estate highly developed industry has entered a channel, has become a new growth point of Chinese national economy and consumption of hot spots and a pillar industry of national economy. The development of the real estate industry has played an important support of the real estate credit business which also enteres a period of rapid development, and real estate development in China plays an increasingly important role as "rain or shine table" of the development of the real estate industry. In this case, a lot of money of the financial industry going into the real estate industry, as a result, market risk of real eastate indusry gradually transferred to the financial industry, followed by the emergence of financial risks may be. In recent years, the state has promulgated a series of real estate policy to limit the increasingly overheated real estate industry, to prevent possible real estate credit risk. For example, to cancel or limit the second and third suites loans, real estate loans increased the proportion of own funds, the mortgage loans as the threshold is set to thirty percent, all of these practices is for commercial banks to minimize the probability of acceptable level, thereby protecting the safety of commercial banks, credit funds, blocking the real estate bubble risking associated channel banks. Therefore, the real estate credit risk research is necessary, with strong theoretical and practical significance.This credit risk management for real estate research is described by author in the main three aspects. The first part is an overview of the real estate credit risk. First proposed the concept of real estate credit, followed by a variety of risks summarized and interpreted, then elaborated China the status of the current real estate credit risk. The second part of the real estate risk analysis of the causes. This chapter from the micro and macro two factors, commercial banks, the real estate industry itself, the financial sector and macroeconomic factors, internal factors, the in-depth analysis of specific causes of real estate credit risk. Such as commercial banking system and business practices there are many unreasonable, given the long-term stability of new business has brought a lot to play practical difficulties; the real estate market due to their own financial risks caused by factors even more elusive; real estate dependence on bank credit is too high; there most of the domestic commercial banks, low capital adequacy ratio, a higher rate of non-performing assets, the status of lack of capacity to resist risks; China’s financial laws are not perfect and so on. The third part mainly describes Chinese commercial banks to enhance credit risk management strategies of real estate. This chapter from the legal, real estate, credit risk management system, review of real estate development loans, individual housing mortgage loans and real estate macro control aspects of management made a number of effective measures.