Research On The Impact Of Regional Financial Stability And Real Estate Market

Since the cancellation of the welfare housing system in 1998,the housing monetization policy implemented in China has played a very strong role in promoting the real estate market has achieved rapid and rapid development,making its industrial industry gradually become the pillar in the Liaoning economy.The real estate investment and consumer market needs a lot of financial support,mainly from bank credit.When the real estate market fluctuates,regional financial stability will inevitably be affected,and the two are closely linked.And because of the poor liquidity of real estate and the uneven level of regional financial development,the relationship between financial stability and real estate in different regions is different.Therefore,it is necessary to study the relationship between financial stability and the real estate market in Liaoning Province.This paper first sorts out the literature related to financial stability and real estate market,and combines relevant concepts to summarize the mechanism of interaction between regional financial stability and real estate market as the theoretical basis of research.Secondly,combined with theoretical research,this paper analyzes the current situation of Liaoning real estate market,and constructs Liaoning regional financial stability index system.Using 1998-2016 annual data to describe and analyze it,using CRITIC weighting method to calculate comprehensive index,objectively and comprehensively evaluate Liaoning financial stability process status.The per capita disposable income of urban residents is the main factor affecting regional financial stability.In the financial system,the bank loan-to-deposit ratio is the main factor,indicating that bank stability is the focus of regional financial system stability.In the process of objective empowerment of the indicator system.,it is found that the continuous growth of real estate prices does not match the low-lying real estate market in Liaoning Province,and there are hidden dangers in financial stability in Liaoning Province in recent years.Thirdly,combined with the theoretical index of theoretical research and construction,the time series correlation measurement method is used to empirically study the relationship between financial stability and real estate market in Liaoning.Finally,for better maintain financial stability in Liaoning and maintain the healthy development of the real estate market,this paper put forward relevant policy recommendations on government,financial system and real estate enterprise.The relationship of Liaoning Province financial stability and the real estate market of empirical research is the focus of this article,the paper analyzes mainly from two aspects:(1)The impact of financial stability on the real estate market.The VAR model is established by using the 2003-2016 regional financial stability composite index and real estate price,and the Granger causality test is used to analyze the impact of regional financial stability on the real estate market.According to the analysis results,the higher the financial stability,the higher the real estate price increase,and the real estate market has a good development prospect,but the financial stability of Liaoning Province has a lower impact on the real estate market in the long run.(2)The impact of the real estate market on financial stability Using the 1998-2016 real estate investment completion,commercial housing sales area and the RMB loan balance of Liaoning financial institutions,the VEC model was established to study the long-term impact of the real estate market on bank credit from the aspects of development investment and consumer market.The empirical analysis shows that there is a long-term correlation between the real estate market in Liaoning Province and bank credit,but in the short term,volatility of real estate investment sales area has an impact on bank credit,but the impact is not obvious.According to Granger causality test,it is found that bank credit and real estate market are Granger causality,indicating that Liaoning real estate market is closely connected with banking institutions,real estate market fluctuations will affect the stability of banking institutions,and thus threaten the whole financial Smooth operation of the system.The innovation of this paper lies in:firstly,from the macro level and financial institutions,combined with the financial development of Liaoning Province,construct the regional financial stability index system of Liaoning Province,and use the CRITIC method,an objective weighting method,to quantitatively assess regional financial stability.This makes the research conclusion more objective and accurate.Secondly,taking Liaoning area as the research goal,considering the mutual influence between financial stability and real estate market,analyzing the relationship of existence that has certain reference value for the proposal of policy.