Study On The Correlation Between Credit Scale Of The Bank And The Fluctuation Of The Real Estate Price In Tianjin

Real estate is a pillar industry in China, and its development is related to the steady growth in many industries. The real estate requires a lot of financial support, so it is a capital-intensive industry and is closely related to the financial industry. The bank is an important part of the financial market in our country, and the development funds and purchase capital in the real estate market mainly comes from bank loans. From this perspective, the healthy development of the real estate industry and financial industry is related to the steady growth of the whole national economy. The government has taken many measures to control the housing prices like the limit of credit, interest rate cuts and other policies. It reflects that the bank credit scale and real estate price fluctuation influence each other closely. It has importantly practical significance to the healthy development of Chinese real estate market and the bank’s risk control to study the relationship between the two.Tianjin is a center city of north of China, and its economic develops rapidly. Tianjin’s real estate price is relatively stable. The rapid development of Binhai New Area, further integration of the Beijing-Tianjin-Hebei region, the construction of Yujiapu financial district and the establishment and approval of Tianjin Free Trade Area has brought new opportunities for development to the real estate market of Tianjin.The first part of the paper generalizes the related research at home and abroad; the second part summarizes the theoretical basis of the scale of bank credit and real estate market price fluctuations interaction; the third part introduces the operating environment and development of the real estate market in Tianjin, and bank credit support for the real estate market; The fourth part analysis the relationship between the bank credit scale and the real estate prices volatility of Tianjin through the empirical study, concluded:There is a long-term equilibrium relationship between the scale of bank credit and the real estate market prices, bank credit is Granger cause fluctuations in real estate prices, not vice versa; The fifth part concludes the paper’s findings and make recommendations to promote the stability and development of Tianjin real estate market and financial market.