In Depth: Chinese Banks Balk at Regulatory Support for Rate Cuts to Existing Mortgages

The Chinese central bank’s recent support for commercial lenders to reduce rates on existing residential mortgages has been met with foot-dragging from banks, despite the potential benefits that the cuts could offer China’s faltering economic recovery.

Commercial lenders have been encouraged to renegotiate existing mortgages with homeowners, or replace them with new ones, Zou Lan, head of the monetary policy department at the People’s Bank of China (PBOC), said at a press briefing on July 14.