Author(s)

Weishun Kao

Corresponding Author

Weishun Kao

Abstract

Since the reform of the real estate market in 1998, the real estate market has driven economic development, followed by explosive price growth, but triggered the real estate bubble. Since most of the capital lending in the real estate industry comes from banks, the relationship between the real estate industry and the banking industry is particularly important. This paper studies the relationship between real estate price and bank credit in Fujian province and concludes that there is a long-term equilibrium between them through the VAR model.

Keywords

Real estate price, Bank credit, The var model