China Eases Property Loan Rules to Boost Economy Amid Slump, But Banks Still Face Challenges
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China's financial regulator lowered risk weights on property loans to help grease the economy amid a slump. This frees up capital for banks.
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The regulator kept minimum capital requirements unchanged but eased rules for mortgages and property developer loans.
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The new rules aim to balance risk control with serving the real economy, especially technology, green sectors, and SMEs.
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Small lenders face simplified capital rules to better serve local economies. Large banks with overseas exposure still face rigorous supervision.
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The changes may help banks but won't undo losses. Priority is ensuring home delivery by sacrificing bank interest.