Research On The Relationship Between Commercial Bank Credit And Real Estate Price

Since the thirteenth National Congress of the Communist Party of China included the real estate market in the socialist market system in 1987,the real estate market has started to develop and has rapidly grown and prospered.It has made great contributions to the growth of the national economy and has become a pillar industry for China’s economic development.Reviewing the development of the real estate market,fluctuations in housing prices have not only hindered the stable development of the economy,but also increased the cost of living for residents and reduced the well-being of residents.Therefore,how to regulate house prices within a reasonable range is related to the country.The important issue of stable development and national happiness and well-being.In this regard,government agencies have been actively adopting relevant policies and measures to regulate and control the real estate market.In the measures to regulate and control the real estate market over the years,the regulation of bank credit has been regarded as the main measure.However,from the effect of the credit measures taken by the government on the real estate market,credit policies are not always effective and timely to regulate the real estate market.House prices are still in a state of repeated ups and downs,and they cannot be kept within a reasonable range.What is the relationship between bank credit and real estate prices? Is the expansion of bank credit scale the main reason for the rise in real estate prices in recent years? Whether bank credit scale and interest rates can effectively regulate real estate prices and how to coordinate relevant policies can play a better role in real estate price regulation.With these questions in mind,this article explores in detail the internal logic of the relationship between bank credit and real estate prices,and proposes relevant policy recommendations.This article first analyzes the research background and significance of the article,and then sorts out relevant domestic and foreign literature.Based on this,it further analyzes and illustrates the current status of China’s bank credit and real estate market development,and then analyzes its impact from both bank credit scale and interest rate.The mechanism of real estate price,and then select the 2004-2017 quarterly data to construct a structural vector auto regression model empirical analysis of the relationship between bank credit and real estate prices.The empirical results show that in the real estate price change,the bank credit scale is the biggest influence on the real estate price.Changes in the bank credit scale can significantly affect the real estate price,and the bank credit interest rate impact on house prices is only evident in the early stage,and Compared with the scale of bank credit,the impact of bank credit interest rates on house prices is significantly weaker.At the same time,changes in real estate prices also cause different changes in bank loan scale and interest rate in different periods.The initial interest rate has a higher degree of response to real estate price changes.However,in the later period,the impact of changes in real estate prices on the scale of bank lending was rather large.This shows that the relationship between bank credit and real estate prices is not static.Finally,on the basis of the foregoing analysis,this article puts forward relevant policy recommendations on how to strengthen the regulation of interest rates,reduce the real estate market’s reliance on bank credit,flexibly coordinate policies to regulate the real estate market,and promote the healthy and rational development of the real estate market.Through the study of this article,on the one hand,we further sort out and subdivide the content of relevant theoretical research,and make the impact mechanism between bank credit and real estate prices more clear and clear.On the other hand,the empirical results of the article and related policy recommendations are for government departments and businesses.The decision of the bank and real estate market also played a certain reference role.