PBOC Delivers Political Message to Banks: Lend to Individual Home Buyers; Monitor Public Opinion and Respond to Negative Media Reports

Are the banks intentionally trying to make life tough for the leadership? One cannot discount the possibility of deep state games, but now the banks have received a direct political message from the top.

China Central Bank Asks Banks to Approve Mortgages in Timely Way

China’s central bank asked the nation’s biggest lenders to grant mortgages in a more efficient and timely way, as leaders seek to address a cooling in the nation’s property market.

The People’s Bank of China told 15 banks including Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. at a meeting yesterday to “improve efficiency of service, give timely approval and distribution of mortgages to qualified buyers,” the central bank said in a statement posted on its website today.

The central bank went further and stressed that this is a political message from the central bank. Furthermore, banks are to take responsibility for responding to public opinion and mount a public relations campaign to brunt the negative stories in the press.
央行副行长：个人住房贷款事关百姓利益 银行要讲政治

Please go back and convey to the party committees, this is not my personal opinion, this is the view of the party committee of the central bank. Must talk about politics, it is related to the direct interests of the people.

Second, the governor Liu Shiyu raised five points

Speaking to all commercial banks, Liu governor made a concluding speech, the following five aspects of guidance.

(A) priority allocation of resources. To each line in the existing resources, according to market demand, priority (to ensure care and other various forms) to ensure that the allocation of resources for housing loans. Housing loans itself has potentially huge market demand, to fully understand the process of urbanization in the future, stimulating economic growth troika important role, not only for the real estate industry. Since last year, the Government has not sent a file to the next real estate, local market restructuring, but the overall look is no problem. Individual housing loans stabilization function of economic growth, is an important part of the State Council, people's livelihood, the financial system is attached at one end to people's livelihood, one end of the CPC Central Committee and State Council attached only to strengthen and improve, not change and waver, is inclusive finance, an important part of financial inclusion, we must adhere to the socialist financial direction. Please go back to the party committees to convey, this is not my personal opinion, is the party committee of the central bank views. Must talk about politics, related to the vital interests of the people.

(B) Interest rate reasonably priced. To understand the pressure to survive the bottom of society officers have a social responsibility, not so that we lose money, be financially sustainable development (preservation, profit) like, do not over-pursue business sustainable development (money as possible) for each line execution rate almost on the line.

(C) to improve efficiency. To control the pressure alone, orders, soon after loan approval is necessary. Scale should not be the main reason, if there is this appeal, you can find someone to adjust the size of the line to help coordinate lines interpersonal.


(D) risk prevention. Currently the overall NPL ratio increased attention abandoned house phenomenon. CCB to Wenzhou sample to see if there is large-scale "abandoned house" phenomenon.

(V) respond to public opinion. Banks must face news of rising interest rates, tightening of mortgage, can not let the negative news about banks dominate the media. Five state-owned banks have a coordination mechanism, banks should carry out monitoring of public opinion, there must be an appropriate response, "hold together" care for the image of our banking industry to promptly respond to public opinion in a fitting manner.

In addition, Liu governor also noted caution in considering the risk of bank balance-sheet financing business from domestic and foreign banks situation, the risk of financial services are finally reveal all the details of the bank, the central bank recently issued a document to specification.

Finally, Liu governor asked all participants to the Bank's head office promptly after the party committee to convey the spirit of the meeting, and the implementation of the meeting request