Studies On Project Financing And Risk Control Of Land Banking

In recent years,land reserving system has been a significant measure of the urban land system reform, but also a hot in the reform of real estate. Land reserving often referred to Land Banking or Public Land Banking,which is defined that public institutions obtain and hold as a future development purpose or realizing the public interest,before the development and utilization of land has not been required. Land reserving originated in Amsterdam, the Netherlands, in 1896,and then many European countries have implemented land reserving system.In New York, Hawaii, Hong Kong, China and some other regions are also carrying out the similar system. Many scholars believe that the land banking promote the orderly development of urban, reducing house price, stabilizing land price to curb land speculation, as well as improving the quality of the city's ecological environment and so on.Due to the tremendous value of land assets, land consolidation costs (particularly the demolition, resettlement costs) is relatively high.In terms of land acquisition, collation and storage process is bound to occupy a large capital for the conditions, and recover in the phase the supply of land. As a result, the supply of land acquisition reserves operation, required substantial funds advances. The foreign sources of funds are:the long-term low-interest loans provided by banks, the Land Banking bonds, publicly traded stocks issuanced.by bank, private funds. On the actual situation, as a result of the single sifinancing channels and the imperfections of the domestic environment, the funds of our land banking project financing come mainly from the financial allocations, bank loans and land section in advance. As the Government has put in the registered capital is too small, land reserve funding agencies to rely largely on bank loans. How to carry out a land bank financing, decentralized land bank financing risks, has become a hot topic at present. In addition, the land reserve institutions financing the management of not only the ability of the mechanism related to the effective functioning of the reserves, but also risk management and cost control one of the main elements. Therefore, it is necessary to establish a complete risk analysis of the feasibility of financing mechanisms, in order to avoid greater risk financing and maintaining the stability of the land marke.The Specific structure of this paper is as follows:Chapter I, this paper, on account of the basic connotation of a land banking and institutional strengths, expounds the land banking of development, points out that stable and reliable sources of funding are the primary factor of the establishment of the land reserving system, the development and smooth operation.Through the introduction of specific land banking project financing in China's development, it reveals some financing problems by the development of a land banking project in our country. ChapterⅡ, Through the introduction of specific land banking project financing in China's development, it reveals some financing problems by the development of a land banking project in our country., such as effects on the economy, the source of funds, financing methods, and explore the development of our country by a land bank project financing problems. ChapterⅢ, the system of land reserves that exist in project financing, the main risks, combined with our country the truth, from the internal, external two aspects in detail.Chapter IV, on the basis of risk analysis, primarily from the external environment to improve land reserve, a sound system of laws and regulations related to enhance the operation of land reserve capacity, to further standardize the operational flow firms, expanding diversified financing system for five specific and precautionary measures to further control the expectations of the financing risks.Chapter V, through specific case in practice, it explores the mode of financing and risk prevention and control countermeasures in line with the condition of our country. Finally summarized our country land reserve development project financing.In short, I believe that our country has been widely recognized and praised in tremendous achievements by extensive work and experience in recent years. However, at the same time we should also see that land bank financing in the operation of the process is faced with a larger risk because of the lack of scientific theories, financing mechanisms and the absence of a strong support system to support the other country to further implement a strict land policy.Government departments should consider and formulate timely measures to guarantee the loan security, the prevention of financial risks, and promote the real estate market and financial market stability and development.