BEIJING Oct 13 China's banking sector has
"little to worry about" from its fast growing mortgage lending
business, an official with the China Banking Regulatory
Commission said on Thursday.
"The real estate market has limited direct impact on banks,"
Wang Shengbang told reporters at a briefing.
While home mortgage loans account for two-thirds of all real
estate loans, 55 percent of mortgage loans have a loan-to-value
ratio of less than 60 percent, Wang said, adding that the
average loan-to-value ratio of all mortgage loans is 55 percent.
"That level is low compared with global standards," he said.
"In other words, the safety of bank assets is protected."
Wang also said that for 94 percent of mortgage loans, the
monthly mortgage payment is less than 50 percent of a family's
More than 20 cities have imposed measures, including higher
mortgage down-payments, to cool hot property markets that have
raised official alarm in Beijing about potential real estate
Zhou Xiaochuan, governor of the People's Bank of China
(PBOC), earlier this month said the Chinese government is
"paying close attention" to rising property prices in some
cities and will take appropriate measures to promote the real
estate market's "healthy development".
(Reporting by Shu Zhang and Matthew Miller; Editing by Richard