CBRC wants different lending policies

China Banking Regulatory Commission Chairman, Liu Mingkang, wants financial institutions to adopt different policies to mortgage lending.

The head of the banking regulator, Liu Mingkang, is urging banks to carry out different lending policies for first and second home buyers. He says banks should raise the down payment ratio and lending rates if they are not certain of the risks involved in some mortgage loans.

Liu also says banks have the right to deny loans to speculators.

Liu Mingkang, Chairman, China Banking Regulatory Commission, said, "In Beijing, some banks already implemented the differentiated lending policies on their own. For those buying a second home or more, some banks asked them to pay at least 60 percent of the cost as a down payment."

Liu Mingkang also says the regulator will boost supervision over banks' lending in the property sector by checking borrowers' credit conditions and banning developers from using land as a guarantee.

He says new loans this year will reach 7.5 trillion yuan which will help support economic recovery. The figure stood at 10 trillion yuan last year. Liu wants to see a strengthening in risk management and control in new yuan loans.

The head of the banking regulator, Liu Mingkang, is urging banks  to carry out different lending policies for first and second home buyers.