BEIJING Oct 13 China’s banking sector has”little to worry about” from its fast growing mortgage lendingbusiness, an official with the China Banking RegulatoryCommission said on Thursday.
“The real estate market has limited direct impact on banks,”Wang Shengbang told reporters at a briefing.
While home mortgage loans account for two-thirds of all realestate loans, 55 percent of mortgage loans have a loan-to-valueratio of less than 60 percent, Wang said, adding that theaverage loan-to-value ratio of all mortgage loans is 55 percent.
“That level is low compared with global standards,” he said.”In other words, the safety of bank assets is protected.”
Wang also said that for 94 percent of mortgage loans, themonthly mortgage payment is less than 50 percent of a family’sincome.
More than 20 cities have imposed measures, including highermortgage down-payments, to cool hot property markets that haveraised official alarm in Beijing about potential real estatebubbles.
Zhou Xiaochuan, governor of the People’s Bank of China(PBOC), earlier this month said the Chinese government is”paying close attention” to rising property prices in somecities and will take appropriate measures to promote the realestate market’s “healthy development”. (Reporting by Shu Zhang and Matthew Miller; Editing by RichardBorsuk)
China bank regulator: 'Little to worry about' from mortgage loans - Reuters
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