Nearly two months after the Central Bank and the China Banking and Insurance Regulatory Commission jointly issued the “Notice on Establishing a Centralization Management System for Real Estate Loans in Banking Financial Institutions” (hereinafter referred to as the “Notice”), recently, Shanghai, Zhejiang and other places successively issued Detailed rules for the concentration of real estate loans, and some banks’ mortgage assessment indicators have risen. According to the notice issued by the Shanghai Branch of the People’s Bank of China and the Shanghai Banking and Insurance Regulatory Bureau on the Concentration of Real Estate Loans by Financial Institutions in the Mainland’s Corporate Banking Industry, the relevant regulatory indicators for the third and fifth-tier banks have increased by 2% and 1.5% respectively.
According to the “Notice”, the concentration of real estate loans includes two indicators: the proportion of real estate loans and the proportion of personal housing loans. For the third, fourth, and fifth tier banks, the “Notice” stipulates the upper limit of the proportion of real estate loans and the proportion of personal housing loans. The upper limit of the proportion of housing loans is 22.5%, 17.5%; 17.5%, 12.5%; 12.5%, 7.5%. In Shanghai, the third gear is 24.5% and 19.5%; the fourth gear is 17.5% and 12.5%; the fifth gear is 14% and 9%.
The “Notice on Implementing the Management Requirements for Real Estate Loans of Banking Financial Institutions” recently issued by the Hangzhou Center Branch of the People’s Bank of China and the Zhejiang Banking and Insurance Regulatory Bureau stated that the requirements for the management of real estate loan concentration of corporate financial institutions in Zhejiang’s jurisdiction are determined as follows: The third-tier, fourth-tier, and fifth-tier real estate loan concentration management requirements are based on the benchmark, the third-tier upper limit remains unchanged, the fourth-tier upper limit is increased by 1 percentage point, and the fifth-tier ceiling is increased by 2 percentage points.
According to the “Notice”, branches of the People’s Bank of China, sub-provincial city central sub-branch and above, in conjunction with local offices of the China Banking and Insurance Regulatory Commission, can combine the local economic and financial development level, the specific conditions of the local corporate banking financial institutions in the jurisdiction and the Systemic financial risk characteristics, based on the management requirements of the third, fourth, and fifth levels of this notice for real estate loan concentration, within the range of 2.5% increase or decrease, reasonably determine the local legal person applies to the corresponding level in the jurisdiction Banking financial institutions real estate loan concentration management requirements Spark Global Limited.
article links：Some Banks' Housing Loan Assessment Indicators Float
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