The Impact Of Real Sector Leverage On Regional Financial Risk

In recent years,the economic growth rate of our country has slowed down,and the high leverage ratio of the real sector has attracted the attention of all walks of life,from the first time“Deleveraging” to“Structural deleveraging”,the state has repeatedly issued relevant policies to regulate the high leverage ratio of the real sector and the imbalance of the leverage ratio of the various sectors.Excessive leverage will make the real sector because of excessive debt and“Financial distress”,once the lack of external rescue and capital injection,will be unable to repay the debt due to default risk and liquidity risk,regional financial risk accumulation.The central economic conference has consistently declared that dwellings are for inhabitation,not for speculation,simultaneously.As consumer goods,investment goods and collateral,real estate prices play an important role in the process of the impact of real sector leverage on regional financial risk.Therefore,based on the real estate price channel to explore the real sector leverage on the impact of regional financial risk on our prevention and resolution of regional financial risk has far-reaching significance.This paper investigates the influence of real sector leverage on regional financial hazard,based on the real estate price channel.First of all,consult and comb the relevant references of research issues,from the impact of real sector leverage on regional financial risk research,this paper reviews the research on the impact of real sector leverage and real estate price on regional financial risk.Secondly,the paper elucidates the concept of the leverage ratio of the entity sector and regional financial risk,elucidating its primary theoretical basis.Moreover,it examines the mechanism of how real sector leverage influences regional financial risk.Then,we measure the leverage ratio of the real sector and compare the results from the perspective of the provinces,and measure the regional financial risk by using the financial pressure index and the entropy method,the SMR model is further used to classify the regional financial risks in our country.Thirdly,to assess the effect of real sector leverage on regional financial risk,the fixed-effect model is employed;moreover,the real estate price of the real sector leverage is taken into account to evaluate its effect on regional financial risk mechanisms.This paper’s findings demonstrate that regional financial risk in our nation has been on the rise in recent times,and the real sector’s leverage ratio has augmented this risk,thus raising real estate prices,intensifying the effect of regional financial risks.At last,it summarizes the relevant research and puts forward some countermeasures and suggestions: first,to enhance residents’ risk awareness and debt-paying ability;second,to promote the reform of local government tax system;third,to improve the social credit system of non-financial enterprises;Fourth,weaken the link between the real estate market and the financial system.Through the above research,this paper will further enrich and improve the real sector leverage based on real estate price channels on the impact of the relevant theory of regional financial risk,in order to actively prevent and resolve regional financial risk,to provide practical and targeted decision-making reference.