China banking regulatory "10 requirements" to prevent credit risk

----the internal bank sets the coverage to be more than 150%"two set of mortgage" policy strict implementation of the "Report" (reporter Di Mengyu) The mainland last week released a series of economic data, there are signs that some of the rescue funds into the stock market and the property market, the central government is very concerned about. China Banking Regulatory Commission chairman Liu said that the rapid expansion of China's banking lending in the first half of this year has played an important role in promoting economic stability, but the risk of the accumulation of high speed loans is also increasing, and the tendency of the banking financial institutions to operate in an imprudent and impulsive lending and extensive has risen. 　　He also proposed to optimize the "10 requirements" of credit, including the need for the internal banking year to increase the provision of coverage to more than 150%, and strict implementation of the "Second suite" standards. According to the Xinhua news agency last night, Mr Liu, in a recent briefing on the CBRC's third economic and financial situation in 2009, after analyzing the financial situation at home and abroad in the first half of this year, he pointed out that the rapid expansion of banking loans in the first half of the period has played an important role in promoting economic stability, and the economic stabilization has rebounded under a number of policies. But the foundation of sustained recovery is not stable, there are many unstable, uncertain, unbalanced factors. 　　He stressed that the current need to specifically prevent the project capital is not real or insufficient risk, Bill financing risk, loan concentration risk and real estate market risk and other new risk points. 　　The economic rebound is shaky, according to data from the central bank, the first half of China's new renminbi loans hit a record 7.37 trillion yuan. 　　While stressing the current need to specifically prevent the project capital is not real or inadequate, the new risk points to the banking financial institutions to strengthen the risk management, and further optimize the credit structure of the "10 requirements." The "10 requirements" include the strengthening of risk control in the mainland banking sector, adherence to the capital adequacy ratio and the bottom line of the provision coverage, and the need to increase the provision coverage to over 150% during the year. In addition, we must strengthen the internal and external audit oversight role to ensure that the overall operation of the Bank's health compliance. 　　In particular, he pointed out that within the bank to control the risk of real estate loans, strict implementation of the "Second Suite" standard, according to the provisions of the implementation of housing mortgage loans down payment ratio and loan interest rate, to invest in housing to adhere to the first Kang Gaocheng number, the interest rate of strict risk pricing and credit strict In addition, the rumors of a number of mainland cities to tighten the second-suite loan policy has finally come true. 　　Bloomberg quoted a notice from the Shanghai Banking Regulatory Bureau last night that it had asked banks to implement the two-suite mortgage lending rules and reviewed the mortgage contracts, stressing that the first rate could not be lowered under any pretext. Shanghai banking regulator announced the implementation of two housing loans to the mainland media had previously said, a number of banks in Shanghai branch to the real estate agent or intermediary to give verbal notice "must strictly enforce the two sets of mortgage regulations," the notice clearly requires two sets of mortgages must not have 70 percent discount, and two sets of loans strictly carry out a down payment of 40%, the rate of 10% of the policy.