Real Estate Financing to Tighten Again

iFeng: 部分银行迎“窗口指导” 房企融资渠道再收紧
Sogou: Some banks tighten financing channels for housing enterprises in response to "window guidance"

"The regulatory authorities have given' window guidance' to some banks with large real estate loans and fast growth, demanding to control the amount of real estate loans, but the specific requirements for each bank are different." Mo Yichen (not his real name), a person related to a Shanghai city commercial bank, disclosed recently that the core idea of the above measures is to control the scale of real estate loans. Although it is not said that the relevant businesses will be completely frozen, all kinds of guidance and non-approval by the head office are emerging one after another. Banks that have seen their mortgage loans grow too fast may be affected.

On the other hand, on the 4th and 5th of July, the Ningbo Bureau of Bank and Insurance Supervision issued 39 fine tickets, imposing a total fine of 12.75 million yuan on more than 10 banks. Nearly 60% of the fine tickets were for irregularities in real estate mortgage loan management and imprudence in real estate credit business.

Analysts pointed out that the above measures may mean that the bank's real estate credit will also slow down following the suspension of some real estate trusts. This will be a test for developers with high debt ratio and not too much working capital on hand.