Bank stress tests require consideration of 60% scenarios

According to media reports, China's Banking Regulatory Commission has asked banks to do a new round of stress tests, and banks are to put the worst of the 50%-60% drop in house prices on stress tests. The regulator's request was not made public.　　The new stress tests were reported only in cities where prices had risen too high. Previously reported that the previous round of home mortgage stress tests, the assumption is that prices fell by 30%. The results of the pressure test summary released by the CBRC at the end of July showed that under the premise of a 30% decline in house prices and a 108 per cent rise in interest rates, the non-performing loan rate of sample banks would rise by 2.2%, pre-tax profits would fall by 20% and 46 rural commercial banks would increase their non-performing rate by 3.5%. The loan loss rate increased by 30%. This newspaper synthesizes