Research On Credit Risk Management Of The Real Estate Of Y, H Province

As one of the most important cities in H province, Y has been experiencing fast-pace development in real estate. Currently, Y ranks top three in many core real estate indexes such as average commercial house prices etc. among cities or counties in H provinces excluding its capital. Though its prosperity in real estate, we should not ignore the potential credit risk.As one of the pillar industries in the national economy, real estate’s development has a far-reaching influence on people’s lives. There are many approaches for real estate enterprises to get money. But funds from commercial banks still plays a major role in financing. Therefore, real estate loans, to some degree, determines the development of real estate. For real estate loans, the most crucial part is credit risk management. So, the research on credit risk management of the real estate is necessary.Based on relevant theories, this article studies the Y’s credit risk management of the real estate. To begin with, the paper summarizes previous researches concerning credit risk of real estate and elaborate the main characteristics of real estate credit risk. By indicating credit risk transmission mechanism, we find the theoretical basis for analyzing the development Y’s real estate industry and its credit risk status. Then we analyze Y city real estate industry’s development from the respect of economic, financial, social and political environment. With regard to real estate market, the analysis is conducted based on price and sales, real estate investment and the growth of real estate enterprises. Moreover, from the perspective of real estate development loans and individual housing loans, existing problems in the development of city real estate credit Y and its causes are analyzed. Finally, suggestions concerning how to improve Y’s credit risk management are provided.