Recently, the central bank expedited the issue of "good credit policy work," a paper, which for the mortgage policy, the document clearly requires: the People's Bank branches to strengthen the guidance of commercial banks, urging them to optimize the credit structure, reasonable control of the mortgage ratio and Growth rate.The high water mark was last July, when mortgages were 102 percent of new bank lending.
Specifically, the branches of the People's Bank of China to the housing credit policy as a part of the policy to control the real estate package, with a reasonable use of the minimum down payment ratio, loan interest rate concessions and long-term loans and other housing credit policy, in strict accordance with the relevant procedures in a timely manner On the area of housing credit policy to make appropriate adjustments.
Second, to strengthen the window of the commercial bank guidance, urging the optimization of its credit structure, reasonable control of the proportion of mortgage and growth, do a good job of regional distribution of mortgage resources to support the three or four lines to the city inventory, effective prevention and control of credit risks, and actively with the local Banking sector, will be differentiated housing credit policy strictly implemented.
In addition, but also to increase the down payment of funds and proof of authenticity of income.
Hai Tong Securities chief economist Jiang Chao quoted media reports, said a central bank official said the new loans accounted for from 45% to 30%. But according to the new financial reporter learned from the central bank, Beijing is difficult to achieve the exact proportion of control, but indeed from various efforts to suppress the new loans in the proportion of individual loans.
The close to the central bank said that the mortgage accounted for two indicators, one is the balance of the proportion of a new share. Short-term main control is a new proportion. He pointed out that last year, especially in the second half of last year, some cities in the new loans, 80% are mortgages.
The central banks wants to control money creation, but if too much money flows into the real estate sector the real economy will be starved. Add in the central government's desire to prevent a housing bubble, and it's recipe for heavy-handed central planning once again. The fruits of which we're already starting to see with Monday's cash crunch in the financial market.
The English version is out: Central Bank Moves Again to Curb Property Lending