Banks told to move faster on home loans
Commercial banks should set mortgage rates at “reasonable” levels and grant housing loans more quickly, especially for first time buyers, the People’s Bank of China said.
During a meeting with executives from 15 commercial banks on Monday, the PBOC emphasized that the banks should improve their housing finance services and give priority to loans for first time homebuyers while keeping a closer eye on the associated risks.
Analysts said tight mortgage conditions are constraining the market. Banks have been raising mortgage rates for first time buyers or holding off on approvals amid tighter liquidity. Banks have also been reacting to their rising exposure to the property sector in 2013. (Photo 5)