Research On The Promotion Mechanism To The Indemnificatory Housing Construction

Construction of indemnificatory housing is not only major livelihood projects arranged by the CPC Central Committee and State Council, but also an important measure to stabilize the housing markets and protect the livelihood. Indemnificatory housing has a significant social and public welfare, which determines the inevitable gains at a low level, for the indemnificatory housing developers, and the same limits the cost of financing those protection Housing developers can bear. Thus the gap of housing funding becomes the urgent problem needed to be solved.Due to the restriction of economic development and land finance problems, the government fund that can be invested for indemnificatory housing is very limited, other funds, such as a certain percentage of land transfer income is utterly inadequate for the indemnificatory housing construction, as to the value part added by Provident Fund and the Provident Fund loans to support the indemnificatory housing construction was more controversial all the time, and can not applicate in a large range, while other financing innovation channels need long time to brew and trial and error to widely used, but the indemnificatory housing construction, is imminent. According to the path dependence theory, this paper argues that the commercial bank credit is still the most direct and easily smooth financing channel for indemnificatory housing construction. Through dialectical analysis, this paper considers that not only indemnificatory housing construction, depends on the commercial banks, commercial banks also rely on indemnificatory housing construction, market, which lay a theoretical foundation for identifying research content.Thus this paper makes how to strengthen commercial banks’funds support to indemnificatory housing construction, as the research content. By defining the related subjects of indemnificatory housing construction, this paper discusses every main body how to establish and improve the internal and external governance mechanism respectively,and how to play an active role in internal and external governance to promote the commercial banks supportive to the construction of indemnificatory housing. For commercial banks, this paper proposes a commercial bank mode that execute customer managers and risk managers, client managers and credit managers should parallel operate in the loan before, during and post-loan, which avoids the occurrence of moral hazard and realizes the maximization of related personnel work. In view of the particularity of indemnificatory housing, this article proposes that the commercial banks should set up a special working group, under the direct supervisor of management, responsible for contact with government departments as well as customer marketing and participation in post-loan management to ensure the realization of creditor’s rights, and maintain the relationship between banks and government. Finally, this paper proposes that the commercial bank regulatory agencies and government departments should actively play the role of constraints and incentives for commercial banks and developers, and through external governance functions to promote and encourage commercial banks to better support indemnificatory housing construction.