Research on the Relationship Between Real Estate Price and Bank Credit

Abstract

Bank credit, as an important financing way of the real estate industry, has a close relationship with real estate price. This paper selects the real estate price of Jiangsu, the domestic loan of real estate developer, the interest rate of banks over five years, and the PPI index from January 2006 to December 2015 to study the correlation between bank credit and real estate price, and finds that there is a long and stable relationship between bank credit and real estate price, which is Grainger causality. Then the corresponding policy recommendations are put forward.