The Impact Of Commercial Banks’ Real Estate Credit Size On Bank Performance

With the acceleration of China’s urbanization process,there is a strong demand for real estate,and housing prices are also showing a continuous upward trend.Commercial banks provide credit support for the development of the real estate industry,and the two complement each other.In recent years,the scale of real estate credit in commercial banks in China has been continuously increasing.This study not only compensates for relevant research on bank performance,but also improves and enriches the analysis of the impact of real estate credit on bank performance.This provides an important reference for the rapid development of China’s financial system under controllable risks.This article takes listed commercial banks in China from 2007 to 2021 as the research object,exploring whether there is a correlation between real estate credit and bank performance of commercial banks,and how credit affects the profitability of banks.Firstly,analyze and study the theoretical basis and development of real estate credit,as well as government policies.Then,analyze and study the credit work and performance management of commercial banks,linking the two,and theoretically analyzing the impact of real estate credit scale on commercial bank performance.Secondly,it makes an empirical analysis of the impact of credit scale of commercial banks on bank performance,introduces the selection of variables and data sources in this thesis and conducts regression analysis on the model through unbalanced panel data of listed banks.Through fixed effect regression model and robustness test,this thesis concludes that real estate credit has a significant positive effect on bank performance,and through heterogeneity analysis,it finds that the performance of local commercial banks in different banks is more dependent on real estate credit;The performance of commercial banks in underdeveloped regions of different regional economies is more affected by the scale of real estate credit.Finally,based on theoretical and empirical analysis,this article proposes corresponding policies and suggestions to promote the cooperation and development of real estate credit and banks.