The Strategy Of Risk Management&Control Research On Private Real Estate Development Loan Of Commercial Banks Under The New Situation

The real estate industry has a high degree relevance of other industries in China’seconomy.Its smooth, healthy operation has major significance onstable developmentof the national economy.With the development of China’s economy, the per capitadisposable income growth and accelerated urbanization, China’s real estate market hasbeen rapid development, and the real estate development and investment increasedyear by year.Commercial bank loans are the main source of funds for real estatedevelopment projects, the more share of real estate development loans in total loans ofcommecial bank, the more risks are gathering.Benefit from high-speed development of the real estate industry in recent years,private real estate companies are springing up, and gradually make a figure in theindustry.With the private real estate companies gradual increase the market share inthe real estate industry, the growing proportion of private real estate developmentloans in the real estate loans of the bank,so it is call for new research of credit riskmanagement and control.In2010, Chinese government promulgated the "eight new real estate marketregulation measures" and "five new real estate market regulation measures”.In2011,the government continue to adhere tocurb the growth in demand for supply regulationideas, which is“eight new real estate market regulation measures”.The main featureof this round of regulation is:high frequence of adjustment policies, high degree ofadjustment policies and high determination of adjustment.Until now, the effect ofadjustment is revealed, that is real estate market remains in the doldrums, some of thereal estate enterprises are facing the risk of funding strand breaks. Therefore, thequality of the real estate credit assets in commercial banks faces huge challenge.The real estate industry is a capital-intensive industry, which means real estatedevelopment loans need a large amount of money, the long duration of the policy andmarket risks.However,the private real estate companies have more problems such ashigher assets-liability ratio, repeat financing, moral hazardand low informationtransparency.Therefore,it is more difficult to manage loans credit forthe private realestate enterprise.Besides, because of the increasingly fierce competition in the financial markets, some commercial banks have huge stress on operationperformance.which leads them to focus mainly on project or market share but ignorethe risk management of the private real estate companies.Therefore, there is liitleriskcontrol measures for private real estate companies.Combined with our country’scredit risk control system needs to be improved and the legislative aspects are notperfect, there are large potential risksprivate real estate enterprise development loansof commercial banks.This paper first analyzed the characteristics and the current status of the realestate industry.Then combined with the problems of private real estate corporatefinance, the actual caseof real estate loans of commercial banks, and the controlsituation at this stage of the real estate industry, this paper analyzed the potential risksof private real estate enterprise development loans of commercial banks, and based onthis, we summed up the procedures and processesof the risk managementof privatereal estate enterprise development loans of commercial banks.Besides, this papercreatively addressed improvement suggestion of risk managementin private real estateloans:t.First,increase access mechanism and strictly select high quality projects basedon the traditional borrowing enterprise access mechanism.Second,propose theanti-risk test, and evaluate loan repayment ability of the private real estate companies.Third, address solutions to moral hazard and default rates for private real estatecompanies. Finally, propose information analysis mechanism through an earlywarning mechanism, reducing the lag of commercial bank loan risks of private realestate companies. By doing this,we can promote the commercial real estate industrycredit healthy, harmonious and stable development, ensure the steady development ofthe security and the national economy of China’s financial system.