Our Country Commercial Bank Credit Risk Of Real Estate Research

In2007, the subprime mortgage crisis in the United States produced a huge "Butterfly Effect" in global financial markets. It made not only a strong impact on the U.S.virtual economy and real economy, but also made global financial markets appear violentunrest. The trigger caused the subprime mortgage crisis is the real estate market bubble.The influence of this crisis is so deep and wide that we should pay attention to it andfocus on Chinese real estate market.In recent years, with the development of national economy of our country, the realestate market presents the picture of prosperity, and the house prices rises sharply. Asconsumer demand rises, in addition to the first suit which meets the basic living standard,the speculations and investment in the real estate market also causes widespread concern.And both of this makes the personal mortgage loan scale rapid expand. As an importantsource of funds of personal property buyers and real estate development enterprises, incommercial banks, the proportion of real estate credit funds in total loans is increasing.The real estate industry depends on commercial banks overly, and transfers risks tocommercial banks in the mean time. Although the real estate credit business isconsidered to be less risk and high income business by commercial banks, commercialbanks has not pay enough attention to the implied risks. The Chinese government hasissued a series of policy to control and regulate the real estate industry, and producedresults: the real estate industry capital chain becomes tight, and the over high houseprices begins to appear signs of loosening. It also means that real estate credit risk inChinese commercial banks is increasing. If we do not monitor and control the credit riskof real estate, it will affect the overall stability of China’s banking industry and financialsecurity. Therefore, under the complex economic and financial situation, the research ofour country’s commercial bank real estate credit risk has important and practicalsignificance.In this paper the research of China’s commercial bank real estate credit risk can bedivided into four parts: the first part is about the meaning, features and causes of the realestate credit risk and the related theories; the second part analyzes the role that thefinancial products play in transferring credit risk of real estate. It also analyzes the causesof the subprime mortgage crisis and the lessons learned, and summarizes theinternational banking experience in real estate credit risk control; the third part analyzesthe main financing channels of China’s real estate industry and the development of real estate credit business of commercial banks, then points out the problems that commercialbank faces in real estate credit risk control; The fourth part puts forward several rationaland practical suggestions from three aspects: the borrower, commercial banks and thegovernment regulators.