OTC MARKET NEWS Powered By Quantifi

China’s banking regulator tells lenders to improve risk management of property loans 

October 24, 2016

Nick Heath &Fang Cheng; Editing by Himani Sarkar, Reuters

China's banking regulator has asked lenders to step up risk management of property loans amid record gains in house prices that have raised concerns of price bubbles and ballooning debts.

Controlling real estate business risks and adherence to rules on misappropriation of credit funds into property are among measures banks should take to avoid "systemic and regional financial risks", the China Banking Regulatory Commission (CBRC) said on its website on Saturday, a day after its meeting for an economic and financial review of the third quarter.

Economists believe the greatest near-term risk for China is a possible correction in the roaring property market, which accounts for about 15 percent of GDP. More than 20 cities have introduced measures to restrict home purchases after prices this year skyrocketed in many markets - especially top-tier cities.

China's new home prices rose in September at the fastest rate on record, according to data published by the National Bureau of Statistics on Oct. 21. Outstanding mortgage loans to individuals rose 33.4 percent to 17.93 trillion yuan ($2.65 trillion) from a year ago by the end of September, China's central bank said the same day. Read more

Comments are closed on this post.


Submit your email to receive our newsletter