Nearly two months after the People’s Bank of China and the China Banking and Insurance Regulatory Commission jointly issued the Notice on the Establishment of the Management System for the Concentration of Real Estate Lending in Banking Financial Institutions, now, the detailed regulations on the concentration of real estate loans in many places have been successively issued for the legal person banks under their jurisdiction.
According to the reporter’s information, Shanghai, Zhejiang, Hainan and many other places have raised the appraisal limit of real estate loan of legal person banks under their jurisdiction, but there are slight differences in the specific position of banks and the range of increase. At present, in the local version of the detailed rules, Xiamen and other regulatory standards are consistent with the above “notice”, and have not been adjusted.
Earlier, in the last day of 2020, the People’s Bank of China, silver circ jointly issued “on establishing the management system of the banking financial institutions in real estate loan concentration notice (hereinafter referred to as the” notice “), for the banking financial institutions, personal housing loan of real estate loans accounted of “red line”, defined the notice since January 1, 2021.
On February 23, the People’s Bank of China (PBOC) Shanghai Branch and the Shanghai Banking and Insurance Regulatory Bureau recently issued a notice on the concentration of real estate loans by local legal entities in the banking and financial institutions under their jurisdiction, raising the relevant regulatory indicators of the third and fifth tier banks by 2 and 1.5 percentage points respectively.
According to the end of last year “notice” requirements, the ceiling and personal housing loan of real estate loans accounted for the limit is divided into five files: Chinese large Banks were 40% and 32.5%, respectively, Chinese medium-sized Banks were 27.5% and 20%, respectively, the Chinese small Banks and the county agricultural institutions were 22.5% and 17.5%, respectively, the county agricultural institutions were 17.5% and 12.5%, respectively, village Banks were 12.5% and 7.5%, respectively.
That is to say, Shanghai differentiated implementation is the third 24.5%, 19.5%, the fifth 14%, 9%.
According to reporter understanding, from close to the regulators central sub-branch of the people’s bank of hangzhou, zhejiang silver protects inspect bureau recently issued “on the implementation of the banking financial institutions to real estate loan concentration management requirements of the notice, the facility where the legal person of zhejiang real estate loan concentration management requirement for financial institutions: in third, fourth, fifth gear housing loan concentration management requirements as a benchmark, third ceiling unchanged, the fourth gear cap increased by 1%, a 2% increase in fifth gear cap.
In addition, Hainan has issued the Notice on the Implementation of the Management Requirements for the Concentration of Real Estate Loans in Banking Financial Institutions of Local Legal Persons in Hainan Province, according to the official account of the General Office of the Hainan Provincial People’s Government (WeChat). Shi Haifeng, deputy director of the People’s Bank of China’s Haikou Central Sub-branch, said that according to the regulation, banking institutions with local legal entities in the province mainly apply to the third to fifth levels. Most of the local legal entity banking financial institutions in the province meet the requirements of the real estate concentration management system.
“If the policy permits, we will raise the ceiling of the proportion of real estate loans to the third class (small Chinese banks and non-county rural cooperative medical institutions) by 2.5 percentage points to 25 percent, which is more in line with Hainan’s reality and will help relevant institutions optimize their credit structure in a more reasonable way,” Shi said.
In addition, every reporter learned from the Chengdu area banking industry, the end of last year under the supervision of the notice, Sichuan Province local legal person banking financial institutions real estate loan concentration limit implementation of classification management. Among them, the upper limit of personal housing loans for the fourth level institutions (county rural cooperative medical care institutions) will be adjusted to 14%(1.5 percentage points higher on the basis of the Circular), and the upper limit of real estate loans will be implemented in accordance with the Circular.
According to media reports, Guangdong has adjusted the real estate loan assessment index of its legal entity banks by raising the upper limit of real estate loan concentration by 2 percentage points and 2.5 percentage points respectively for the third and fourth grade related banks. Shandong raised the ceiling on the concentration of real estate loans by 2.5 percentage points to 25 percent for commercial and private banks in cities under its jurisdiction.
On the basis of the Circular, the abovementioned regions can relax the loan limits of local banks because it is clear in the Circular that: Deputy provincial city center sub-branch of the people’s bank of circ branch jointly with the location of silver, but on the premise of fully demonstrated, combined with the local economic and financial development level, jurisdiction method is one of the specific conditions of the banking financial institutions on the mainland, and the characteristics of the systemic financial risk, notify third, fourth, fifth in the file management requirements of the real estate loan concentration as a benchmark, within the scope of the increase or decrease 2.5%, reasonable jurisdiction applicable to the corresponding corporate banking financial institutions where real estate loan concentration management requirements.
Soochow Securities analyst Ma Xiangyun pointed out in the research newspaper, Guangdong moderate relaxation of local banks real estate loan limit, itself in line with the requirements of the new rules of pre-mortgage, reflecting local conditions, stabilize the market policy orientation. Recently, regulators are still strictly investigating the illegal flow of business loans and consumer loans to the property market, and the real estate control in hot areas continues to be strict, so it does not represent the overall loosening of mortgage control.
“In addition, from the perspective of local corporate banks, the moderate easing of mortgage loans can also relieve some of the pressure, because regional local banks have been banned from collecting deposits and issuing loans through the Internet, and mortgage loans are still a high-quality asset in the local market,” Ma said.
Reporters have noted that in the current local version of the rules, there are also places that have not yet floated the upper limit of the assessment index. The reporter learns from xiamen sp method people bank, years ago, the people’s bank of center of xiamen branch, xiamen silver protects inspect bureau issued “concentration on xiamen city real estate corporate banking financial institutions lending management requirements of the relevant notice, xiamen corporate banking financial institutions points belongs to the third and fifth gear, and two institutions than the upper limit of real estate loans, individual housing loans accounted for ceiling are 22.5% and 17.5% respectively; 12.5% and 7.5% are consistent with the regulatory standards issued at the end of last year and have not been adjusted.
According to the National Business Daily, the ratio of personal housing loans (mortgage loans) and real estate loans in the total loans of 37 listed banks as of the end of June last year crossed the “red line” of 29.73 percent in 11 of them.
Regulation also allows banking financial institutions to adjust the business of the transition period. Banking financial institutions that “exceed the standard” must rectify within a time limit. Specifically, at the end of December 2020, if the proportion of real estate loans of banking financial institutions and the proportion of personal housing loans exceeds the management requirements by less than 2 percentage points, the transition period for business adjustment will be 2 years from the date of implementation of the above notice. If it exceeds 2 percentage points or more, the transition period for business adjustment shall be 4 years from the date of implementation of the above notice. The transition period for the proportion of real estate loans and the proportion of personal housing loans will be set separately.
Journalist Li Yuwen