China's four big banks allude to mortgage rule change support
Updated: 2014-09-25 10:42
BEIJING - China's four major commercial banks have expressed veiled support for a mortgage policy change by the central bank rumored to be launched in the near future.
The Bank of China (BOC) said on Wednesday it has authorized local branches to adjust their practice based on market and policy changes, applying adjusted loan application methods.
The BOC said its practice will be market oriented and they will carry out active measures to meet rational housing demands.
Releasing a nearly identical statement, the Agricultural Bank of China said it will put mortgages for first-time home purchases as priority and improve the structure of its lending to the property sector.
Both banks vowed to accelerate their mortgage approval process.
Their announcements followed responses from the other two giant banks, the Industrial and Commercial Bank of China and China Construction Bank, that demonstrated supportive attitudes on Tuesday.
The People's Bank of China (PBOC), the central bank, reportedly asked the four big banks to relax their mortgage rules, which will require a lower down payment on the purchase of a second home amid the sluggish property market.
Experts said, if true, the move will satisfy rational housing demands which have been restrained since the government started anti-speculation campaign to cool the property market in 2010.
The once-heated market has started to chill. Government data revealed more cities reported month-on-month price drops in August as new homes in 68 saw price declines out of 70 major Chinese cities surveyed, compared with 64 in July.
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