This study investigates the effects of real estate regulatory policies on the real estate risks to banks in China. The study shows that real estate control policies issued by the policy makers in China cannot constrain the risks of the real estate market to banks. Real estate stimulating policies, however, could raise the risks of the real estate market to banks, which mainly results from the effects of tax-related stimulating policies. The study also shows that real estate control policies affect the discount rate risks of the real estate firms to banks, while both the real estate control policies and the real estate stimulating policies show some effects on the overall risks of the real estate firms to banks.