China's central bank has asked all commercial banks to strictly abide by real estate credit management policies and make efforts to prevent credit risks, so as to promote the healthy development of the real estate industry.
A spokesman for the People's Bank of China (PBOC) said Thursday that since 1998, China's real estate credit business had developed rapidly along with the reform of the urban residential housing system, which has played an active role in readjusting credit structures, driving up housing investment and promoting national economic growth.
However, he said, some problems had emerged, including the lowering of down payments by banks without authorization, the granting of loans to real estate projects without necessary certificates, or diverting working capital to real estate projects.
To curb these problems, he said, the central bank had decided to inspect real estate credit business undertaken since June 2001,in an effort to improve the management of real estate loans and minimize potential financial risks.
(Xinhua News Agency December 6, 2002)
