Empirical study of the correlation between real estate prices and bank loans based on VAR model

This paper theoretically analyzes the relationship between Chinese real estate prices and bank loans, then based on quarterly data of the Chinese calendar year, conducts empirical test on the interaction through the vector auto-regression model (VAR), and gives the quantitative description about the relationship through co-integration test, as well as the contribution rate of one party to another through impulse response function and variance decomposition. At last according to the results of empirical analysis, we give the policy suggestions and comments.