Government and Policy
Regulator to ban lending to speculative home buyers
(Xinhua)
Updated: 2010-04-12 07:22
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BEIJING: China's banking regulator said on Sunday that banks should not extend loans to home buyers
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Workers clean the glass wall of an office building in Beijing April 10, 2010.[Photo/Agencies] |
Lenders should increase their awareness about financial risks and raise the down payment ratio "by a large margin", said the China Banking Regulatory Commission (CBRC) in a statement.
Down payment ratio of a second or more houses should be no less than 40 percent and the interest rates should be strictly in line with risks, according to the statement.
The action is the latest in a campaign by the central government to dampen China's overheated property market.
