Date
16 December 2017
Chinese authorities say the banking sector's risks on property sector loans are within control. Photo: Reuters
Chinese authorities say the banking sector's risks on property sector loans are within control. Photo: Reuters

China regulator says property loan risks ‘manageable’

China’s banking regulator said on Friday that the overall risk from property loans is “manageable”, but added that it is stepping up oversight to prevent risks from spreading from some failed property developers into the broader financial system.

“The overall risk of loans to the property sector is well under control,” a spokesman for the China Banking Regulatory Commission (CBRC) said. “Authorities vow to strictly implement polices relating to property development loans, land reserve loans and individual loans.” 

The regulator has urged commercial banks to work out emergency plans to mitigate risks stemming from the property sector and focus on certain key regions and companies, according to its annual report.

They are urged to improve management of loans from the listed areas and companies, preventing the credit crunch risk of some firms from spreading into the whole sector.

According to the annual report, China’s banking sector had total outstanding debt of 141.2 trillion yuan by the end of 2013, up 13 percent from a year earlier. Combined non-performing loans increased by 101.6 billion yuan to 1.18 trillion yuan during the year. Their NPL ratio was reported at 1.49 percent, down 0.07 percentage points year-on-year.

–Contact us at [email protected]

JZ/JP/RC

 

Freelance journalist

EJI Weekly Newsletter

Please click here to unsubscribe