Research on Evaluation of Real Estate Development Enterprises' Credit Risk-A Rating System Used by Commercial Banks

In China, most of the real estate development funds are credit loans from commercial banks. So efficient credit evaluation on real estate development enterprises can help commercial banks reduce bad loans possibilities and their own risk. The thesis bases on actual situation of real estate industry, analysing factors which can influence the credit level of real estate development enterprises, selects representative indicators, using analytic hierarchy process to determine the index weights, gives single index rating method and credit rank standard at the same time. Eventually it forms a set of credit evaluation system applicable to real estate development enterprise, and demonstrates the feasibility of the method by a concrete example.