The Study On The Influence Of House Vacancy On The Non-performing Credit Rate Of Commercial Banks

Since the implementation of housing reform in China,the real estate industry has become a pillar industry to promote China’s economic and social development.Real estate industry is a capital intensive industry,from real estate development to sales,every link needs a lot of financial support.Bank credit is the main financing channel of China’s real estate market.About 55% of the real estate development funds come from bank credit.Due to the huge demand for funds in the real estate industry and the practical function of banks to provide loan services,the real estate industry and the banking industry have formed a strong relationship.However,the real estate industry’s excessive dependence on bank credit not only affects the long-term development of the real estate industry,but also aggravates the bank credit risk.With the explosion of P2 P and other Internet Finance and the impact of the economic downturn,real estate developers and individuals have broken the capital chain due to careless investment,and more and more housing and office buildings are vacant,making circulation difficult.Too high housing vacancy rate will lead to the rise of non-performing credit rate of banks,lead to credit risk of commercial banks,and threaten the stability of the financial system.The vacancy rate of real estate is closely related to the non-performing loan rate of commercial banks.How to improve the bank’s risk management ability,carry out strict market monitoring and Analysis on the vacancy rate of real estate,and identify,prevent and control the credit risk of real estate has become a major issue for China’s commercial banks.This paper aims to study the impact of housing vacancy rate on the non-performing credit rate of commercial banks and the real estate credit risk management of commercial banks.At present,the real estate enterprises are in excessive pursuit of scale,but it is difficult to eliminate scale,rely on credit excessively,the capital system is weak in anti risk ability,blind investment and other bad business actions,which lead to a large number of vacant houses,difficult to revitalize assets,broken capital chain,unable to repay loans,resulting in bad debts of banks.This study found that the housing vacancy rate will further increase the bank credit risk,leading to a substantial increase in the non-performing loan ratio.At the same time,the increase of bank loan to deposit ratio,bank loan scale,real estate price and asset liability ratio will also lead to the increase of non-performing credit rate,while the change of macroeconomic level has no direct impact on the non-performing credit rate.According to the above research results,this paper puts forward some suggestions on the management of non-performing credit rate and housing vacancy rate of commercial banks in China.