Individual housing loans on the rise
11/8/2004 11:48
Wendy Zhang/ Shanghai Daily news
Individual
housing loans in Shanghai jumped by 20 percent in the first half of this year,
despite risk controls by local banks, the Jiefang Daily reported today.
The
Chinese macro-adjustment policy has encouraged banks to enhance risk controls in
offering loans. Previously, banks lowered requirements to lend money to home
buyers in a bid to claim more of the market, but currently, banks reinforce
checks on clients' income and credit records, with more time needed in
examination and approval process.
However, risk control is not equal to loan
reduction. According to the Shanghai Banking Regulatory Commission, in the first
six months of this year, local individual housing loans increased by 34.511
billion yuan, or 20 percent from the same period last year.
The Industrial
and Commercial Bank of China's Shanghai branch announced that its individual
housing loans increased by 10 billion yuan every year to more than 40 billion
yuan at the end of last month, with a bad loan ratio of only 0.27 percent
The
Bank of China's local branch registered individual housing loan balances
increasing by 33 billion yuan in the first half of this year, with combined
loans up eight billion yuan.
Banks are still competing for the booming real
restate market, and a series of risk control measures are targeting property
manipulators, not ordinary home buyers, said an industry analyst.
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