China to curb growth of property loans
Updated: 2007-12-14 14:52
The official added the CBRC may begin to announce loan targets for the property sector quarterly, and not annually as usual, to slow loan growth in 2008.
Total yuan loans jumped by 17.66 percent to 26.03 trillion yuan by the end of October, according to the People's Bank of China. Many commercial banks have exceeded their anticipated loan targets for the whole year in just the first nine months, although the central bank has raised the reserve requirement ratio for commercial banks 10 times and lifted interest rates five times this year.
To tighten credit for the property market, the banking regulator may also allow commercial banks to float their bank loan rates within a set limit above the official rates, said an industry insider.
An official of the Agricultural Bank of China agreed, adding "the float loan rates in our initial plan might be 10-20 percent above the official rates."
Given risk management and margin improvement, China Minsheng Banking Corp said if possible, they may also raise their loan rates to property developers by 10-20 percent.
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