The Chinese capital’s bank regulator has ordered an investigation into the illegal use of personal loans to invest in real estate amid growing fears of a property bubble, reported the South China Morning Post.
The Beijing branch of the China Banking and Insurance Regulatory Commission told banks in the city to conduct a comprehensive examination into personal and business loans issued since the second half of last year.
They must “immediately rectify problems found and strengthen internal accountability”, according to a report by state news agency Xinhua, which cited an unnamed bureau official.
Banks will be held accountable if they are found to have allowed “illegal inflows of consumer loans and loan funds into the real estate sector”, the report said.