14 Mar 2016
PBOC asks banks to step up scrutiny of down-payment
As Bloomberg reports, China PBOC called an official meeting with the nation’s biggest commercial lenders in the southern city of Shenzhen last week in a bid to ensure that the rules on mortgage lending are strictly adhered.
The Chinese central bank asked lenders not to compete excessively on mortgages and also requested to step up their scrutiny on the source of borrowers’ down payments, sources familiar to the matter said.
Shenzhen, located in the province of Guangdong that borders Hong Kong, experiences the biggest boom in residential home prices in China, with prices rising 52% y/y in January.
The Chinese central bank asked lenders not to compete excessively on mortgages and also requested to step up their scrutiny on the source of borrowers’ down payments, sources familiar to the matter said.
Shenzhen, located in the province of Guangdong that borders Hong Kong, experiences the biggest boom in residential home prices in China, with prices rising 52% y/y in January.