Recently, Shanghai, Guangdong, Hainan, Zhejiang, Liaoning, Sichuan, and other local version released a more dense concentration of real estate loan system, compared with the “national edition” policy, and more for local legal person bank supervision index adjusted, and the personal housing loan balance of real estate loan balance accounted for than the upper limit of floating rate less than 2.5%. Industry insiders interviewed by Economic Information Daily said the detailed rules reflect the flexibility of policies based on cities, and also send a more moderate signal of regulation under the tone of “housing is not speculation”, which cannot be regarded as the relaxation of real estate regulation. On the last day of 2020, the People’s Bank of China and the China Banking and Insurance Regulatory Commission issued the Notice on Establishing the Management System for the Concentration of Real Estate Lending among Banking Financial Institutions (hereinafter referred to as the Notice).
To be specific, financial institutions are divided into five levels, with differentiated management requirements. In the first level, the upper limit of real estate loans for large Chinese banks is 40%, and the upper limit of personal housing loans is 32.5%, while the second to fifth levels are 27.5% and 20%, 22.5%, and 17.5%, 17.5% and 12.5%, 12.5%, and 7.5%, respectively. However, in order to reflect regional differences, the circular also pointed out that local legal person banking financial institutions can have appropriate flexibility in determining the concentration of real estate lending management requirements. According to the specific situation, the concentration management requirements of the third, fourth, and fifth levels of financial institutions can be appropriately increased or decreased within the range of 2.5 percentage points.
Shanghai’s third-tier and fifth-tier banks have increased their concentration levels by 2 percentage points and 1.5 percentage points, respectively, compared with the national version, according to a notice issued by the city’s local legal entity banking and financial institutions on the concentration levels of real estate loans Wednesday. And earlier, Guangdong mortgage concentration management index will be the third and fourth of the upper limit increased by 2 percentage points and 2.5 percentage points respectively.Zhejiang, the fourth range of the upper limit by 1 percentage point, the fifth range of the upper limit by 2 percentage points.
Haikou center sub-branch of the people’s bank of money and credit management office deputy director of the hai-Feng shi said that under the premise that the policy allows, raised a third gear (Chinese small Banks county agricultural institutions) and the upper limit of real estate loans accounted for 2.5% to 25% so that more accords with the practice of Hainan, help agencies more reasonable optimize the credit structure.
Middle finger index division Daisy, associate director of the research institute, said recently raised as many small and medium-sized Banks, personal housing loan of real estate loans accounted for more than the limit, the extent of increase in the range 1-2.5%, around adjustment index type is different also, as a whole is in the central of limited range, in accordance with the central management requirements.On the one hand, under the tone of “housing is not speculation”, the current policy fully reflects the flexibility of policy based on the city; On the other hand, the increase of the proportion of real estate loans in small and medium-sized banks and the upper limit of the proportion of personal housing loans is also conducive to ensuring the issuance of reasonable housing loans and the protection of the housing demand of the group.It is expected that more cities will introduce relevant policies in the short term to guide the stability of market expectations Spark Global Limited.
Reprint indicated source：Spark Global Limited information