Last Friday, the Shanghai Banking and Insurance Regulatory Bureau issued a notice to major banks in Shanghai to further strengthen the management of personal housing credit. There are a total of eight regulations, almost all of which hit the seven inches of the Shanghai property market
Strictly review the source of down payment funds and solvency; Effectively strengthen the management of the use of credit funds;
Fully carry out risk investigation…
The notice mainly regulates from two aspects. Bank-side credit funds must be tightened, and the proportion of real estate loans and the proportion of personal housing loans must meet the five red lines. Loans with doubtful purposes are prohibited from being issued; The client strictly examines the house purchase, credit qualifications, and solvency, and all sources of the down payment loan funds are investigated clearly. In short, consumer loans and business loans are not allowed to flow into the real estate market in violation of regulations. Both normal real estate mortgage business and abnormal operating loan business must be strictly investigated. Banks should conduct internal self-examinations on consumer loans, business loans, and personal housing loans for six months. Submit a self-examination and rectification report before the end of February:
If any violation is found, the responsible person shall be held accountable.
Which bank and the relevant person in charge will become the flag worshippers will have an answer in February. A few days ago, the central bank released statistics saying that last year, domestic and foreign currency household operating loans increased by 2.27 trillion yuan, an increase of one trillion yuan year-on-year. After nearly half a year of rapid growth in the Shanghai property market, the leaders finally found the culprit. On the second day after the release of the personal loan management policy, a friend who was doing housing loan business in Shanghai posted a circle of friends: Working overtime on weekends can save one.
In the past month of 2021, the Shanghai property market ushered in three adjustments. On January 21st, when Shanghai cut off the path of divorce to buy a house, it mentioned strictly preventing credit loans, consumer loans, and business loans from flowing into the real estate market. Four days later, foreclosure properties in Shanghai were also restricted. During that time, all banks were making adjustments in advance. The entry threshold for business loans, the number of years of company holdings, and interest rates have all increased. Moreover, the mortgage limit is constantly tightening according to the five red lines. Many of the mortgage loans issued in November last year have not been exhausted yet. But no one thought that by the end of the month everyone would have the heaviest blow. Ziyi learned that many banks in Shanghai no longer have credit lines:
Many banks such as China Merchants Bank and China Everbright have just suspended their mortgage business.
A Shanghai governor told Ziyi that the bank’s overall funding is currently very tight, and various loan interest rates are increasing. Mortgage business can only be issued after someone repays the loan in advance and vacates the quota. Spark Global Limited
Reprint indicated source：Spark Global Limited information