The Research On The Impact Of Real Estate Industry To Commercial Banks In China

As one of those who pull the investment demand,the real estate industry plays a pivotal role in China's economic development process."Possessions Make Perseverance",the development of China's real estate industry is inseparable with the background of China's urbanization,which enriches the residential housing demand.Real estate mortgage and other financial products not only help residents realize the "Home Ownership," dreams but also make commercial bank and real estate industry tightly bound together.As China's economy entered a “new normal”,increasing downward pressure on economic challenges facing the real estate industry is growing.The meeting of the Central Economic Work Conference in 2016 made clear that our task is to resolve productivity and reduce real estate stock.According to the economic development process of countries in the world,most of the advanced countries and regions have experienced a housing bubble phenomenon.The bursting of the housing bubble will bring a heavy blow to commercial banks in real estate loan business.This paper reviews the development of China's real estate market,summed up that the development of China's real estate market is broadly divided into four periods..After review of the history,this paper collected data from 2001 to 2014,obtained that China's real estate market is still in the expansion process,which would induced real estate price bubble and threaten commercial banks and even the stability of the financial markets.Therefore,we need to clarify the relationship between the real estate market development and commercial banks in order to prevent in the first place as soon as possible.this paper study the current status of China's real estate's finance status,found that bank credit is still an important source of funding for real estate companies.Due to the inherent characteristics of real estate loans,as specified,uniqueness and maturity,etc.,China's real estate loans hidden credit risk,financial risk,adverse selection risk,market risk and regulatory risk,and so onThis paper studies the relationship between real estate development and commercial banks from the two perspectives,on the one hand,because the real estate industry not only owns large-scale,good quality mortgage assets,but also encouraged by national policies.the development of real estate-related credit business helps enhance the performance of commercial banks;on the other hand,because commercial banks gradually loosen credit approval requirements in recent years,unlimited funds to enlarge the size of the loan,there is overheating in financial situation,and some areas even expands bubbles,which will lead to a variety of risks and put a negative impact to commercial banksFinally,this paper United States and Japan the two countries,put forward a series of recommendations from the real estate...