Research On Real Estate Development Loans Credit Risk Of Hunan Construction Bank

With the development of economic and improvement of the people’s livingstandards in China, since the1990s our real estate industry has a increasingdevelopment. Especially, since2000, the growth rate of investment in real estatedevelopment in China is basically maintained at more than20%.However, real estate development enterprise need large amount of money, andhas a very long period, only a small part of funds of real estate development enterprisecomes from the self-financing and most funds of real estate development enterprisescomes from commercial bank loans, the reason is that partly capital adequacy of thebank, what’s more, is the relatively low funding costs. That’s why with such highspeed of the increase of investment in real estate development, means the real estatedevelopment loans makes up a bigger proportion of the entire banking loans. However,here comes the problem of the ensuing real estate development loans risk control,since the asymmetric information between banks and real estate developmentcompanies and mortgage customers, there is a big chance in the lending process thenon-performing loans will happens. So, the main issue of current real estate loans ishow to control credit risk effectively and how to reduce the non-performing loan rate.Firstly this paper analyze selected topics as well as the background meaning ofreal estate development loans risk research of the CCB(China Construction Bank) inHunan, and summarized the current situation and trends of research in this area whichis under the theme of real estate development loans risk, what’s more, this part alsogave detailed description of the contend of this paper, methods used in this researchand research innovation described. Then discussed the basic theory of the risk of realestate development loans, and combined with of the reality visits of the real estatemarket and CCB real estate credit risk in Hunan Province, and did research in thestatus real estate credit of the CCB in Hunan Province, then tried to sum up the internal and external reasons of the risk of real estate development loans. And then onthe basis of a case of real estate development loans risk management in Company Aand offered defects of real estate credit risk management in CCB. Finally directed atthe analysis results in the third and the fourth part offered policy recommendations tothe real estate development loans risk prevention strategies and reservation, whichincluded internal credit risk control mechanism, establishment of a standard creditsystem of real estate, establishment of a strict credit program of real estatedevelopment loans and realization of coordinated control system of the real estatedevelopment loans risk in inter-bank and transformations of Transfer effectively.