The Study Of The Impact Of The Real Esate Prcie's Fluctuating On Bank's Asset

Since China's housing system was reformed in 1998, the real estate industry has been rapidly developing, and the real estate prices rising rapidly. Especially ,from 2003 to now, our courtry's annual GDP growth reaching more than 10 percent , and the annual growth rate of real estate investments reaching more than 20 percent, which play a important role in the permanent assets'inverstment. At the same time ,the real estate as a capital-intensive industry ,so it's development needs the Financial market's surport.But nowadays , the main financing styles of domestic real estate is Banking loans, and the loan is the most important assets of the domestic banks's business, also the mortgage of real estate loans is the real estate itself, so when the real estate price is boundly Fluctuating, which will have an important impact on the bank's assets. If we can not handle the relationship properly, the entire banking system may befall a severely threaten, thereby threatening the entire financial system's security. So,it have a very important practical significance to study the impact real estate price fluctuations on bank assets.This paper ueses the impac of the real estate price fluctuations on the scale of bank assets,asset structure,asset quality for the main line. At first place, we analyse of the main features of the real estate industry and the mechanism of the impact of real estate price fluctuations on the banking assets by theory. At second palce,we analyse the link between China's Hainan's real estate bubbles burst and the closure of Hainan Development Bank in the 1990s, at the same time we have a brief analysis in the real estate market and bank asset allocation in nowadays.At the third place ,we use the VAR model ,the use of the impulse response function and the method of analysis of variance decomposition of the real estate price fluctuations on the scale of bank assets and assets structure , empirical results show that real estate price fluctuations on the scale of bank assets are long-term upright impact,and the rising real estate prices will lead to bank load of the running, but it doesn't let other assets out. Then we use of linear regression analysis the impact of the real estate price fluctuations on asset quality of banks, and empirical results show the real estate prices and the quality of bank assets into a positive correlation relationship. At last ,according to the analysis of the paper we give some corresponding policy recommendations.