Study On The Relationship Between The Bank Credit And Real Estate Prices Of Shanxi Province

With the rapid development of China's economy,the level of urbanization in various regions has gradually increased,and the real estate market has made great progress in the overall economy.Real estate industry belongs to the capital-intensive industries,real estate demand and supply side cannot leave the bank real estate credit,mostly in bank credit in real estate loans also occupies a large proportion,therefore,the real estate industry and has a very close relationship between bank credit industry.In such a context,whether the real estate market volatility or the bursting of the real estate bubble will have a huge impact on the banking industry.Therefore,it is of great theoretical and practical significance to study the relationship between the two and guide the sustainable and healthy development of the real estate market according to the research conclusions.In addition,as a people of Shanxi Province,the author is concerned with the relationship between the bank credit and real estate prices in Shanxi Province,because it not only relates to the stable development of social economy in Shanxi Province,also affect the province's real estate demanders of consumption and people's life.Based on the above reasons,this paper chooses the relationship between real estate price and bank credit scale in Shanxi Province as the research object.To reveal the relationship between the scale of bank credit and real estate prices in Shanxi Province,this paper from the macro and micro as well as the financial accelerator three aspects of the theory of relationship between bank credit and real estate prices.Investigation found that between bank credit and real estate prices have mutual influence relationship in theory,but is affected by economic development and the transmission mechanism,the relationship between the performance of the form will be different.Then,this paper makes a certain analysis of the development of the real estate market and the bank credit industry in Shanxi Province,and then investigates the relationship between bank credit and real estate prices in the province.The analysis results show that the bank credit scale and real estate price in Shanxi Province show the state of synchronous growth in the past two decades,which can be inferred that there is an interrelationship between them.To verify the inference and further to explore the relationship of house prices and credit scale,Shanxi Province,the fourth part using VAR model,under the premise of considering economic growth factor carries on the analysis on the relationship between the bank credit and real estate prices,empirical research results show that real estate prices in Shanxi Province there is a long-term equilibrium relationship between the credit with the bank.The effect of bank credit on real estate price is significant,while the effect of real estate price on bank credit is not obvious.Combining the above theory and empirical analysis concluded,from the government,banking,real estate companies and buyers view put forward four Suggestions to guide the healthy development of real estate industry in Shanxi Province.Firstly,the government can reduce the fluctuation of real estate price by implementing the credit regulation policy of anti-real estate cycle when the real estate market is unstable.Second,the banking industry in Shanxi Province should be in overall control the scale of real estate credit,attaches great importance to the adjustment of credit structure,reasonable allocation of credit funds into,in the perfect external supervision system and strengthen internal control management mechanism;Again,shanxi building enterprises should try to broaden the channels of funding sources,build a diversified market financial system,perfect the internal governance structure,establish and improve the real estate bubble early-warning mechanism and the cycle of early warning mechanism,build a comprehensive real estate market risk prevention system,etc.;Finally,the buyer can choose the appropriate time and payment method according to the influence rule of bank credit on real estate price.The main contribution of this paper is to study the relationship between the real estate price and the bank credit scale in the underdeveloped regions of central China.The current literature research relationship between bank credit and real estate prices are mostly national or economic developed areas as the research Angle of view,and the relationship between bank credit and real estate prices due to the economic development level and resource endowment of different presents different characteristics,so the economic underdeveloped regions of bank credit and real estate prices research to fully understand the relationship between the two relations has the very vital significance.