Oct 18, 2016 01:39 PM

New Home-Mortgage Loans Were 40% of Banks' Total Last Month

(Beijing) — New home-mortgage loans in September accounted for about 40% of all new loans made by banks that month, according to documents from a source close to the authorities monitoring the loan situation. The documents did not say how many total new loans were made last month.

Research by the China International Capital Corp., an investment bank, estimated that loans grew by a net 1.1 trillion yuan ($163.3 billion) to 1.2 trillion yuan in September.

Sources close to the central bank told Caixin that the China Banking Regulatory Commission had instructed banks in early September to rein in mortgage loans. The requirement was not binding, however, the sources said.

The ratios of home-mortgage loans to total loans for the years 2014 and 2015 were 35% and 29% respectively, according to the banking research team of Guotai Junan Securities.

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