Banks warned of risky housing loans
Print Edition
THE Shanghai office of the People’s Bank of China yesterday held a meeting with the country’s “Big Five” lenders and 20 other major commercial banks over rising housing prices and credit risks.
The central bank reiterated at the meeting that banks have to follow the latest credit tightening measures to tame soaring housing prices, conduct rigid reviews on borrowers’ eligibility for mortgages and check the authenticity of clients’ income certificate, digital news outlet The Paper reported.
It was the second time in a week that the local branch of the central bank reiterated the risks from housing loans to lenders in Shanghai.
Following last week’s meeting, some commercial banks in Shanghai unveiled tighter lending policies for both developers and house hunters, according to files seen by Shanghai Daily.
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