China's commercial banks tightening up

[photopress:real_estate_banks_tighten.jpg,full,alignright]China‘s commercial banks are keeping up with the enforcement of the government’s regulatory policies on real estate market.

Some banks said that they would be strict in implementing state policies on real estate and control the total amount of loans and optimize the loan structure.

Besides implementing various policies issued by the central bank and the China Banking Regulatory Commission, commercial banks will also work out more detailed rules on housing loans in accordance with local conditions. The banks will focus on control both of quantity and loan structure, as well as risks in a rational way.

For example, Huaxia Bank said that it would be strict in loan issuing standards and in examining and approving loans.

Many banks have already slowed down the growth of lending.

The recent housing price drop in southern Chinese cities such as Shenzhen and Guangzhou coupled with the government’s policy on tightening control over the market has made more people have a wait-and-see attitude.
Source: Insurance Newsnet