Jan
26

China Said to Order Banks to Curb New Loans in First Quarter

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  • Central bank may punish banks which fail to control new loans
  • Told to keep increase in new mortgages at fourth-quarter level

China’s central bank has ordered the nation’s lenders to strictly control new loans in the first quarter of the year, people familiar with the matter said, in another move to curb excess leverage in the financial system.

The new guidance from the People’s Bank of China puts a particular emphasis on mortgage lending, the people said, as authorities grapple to contain runaway property prices. And while the PBOC regularly seeks to guide banks’ credit decisions, this time it may also make errant lenders pay more for deposit insurance, one of the people said…

China Said to Order Banks to Curb New Loans in First Quarter

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