Crosses will reduce personal mortgage interest rate concessions

According to foreign media reports, the Bank of China, said in Wednesday, to improve the credit structure, the company will reduce personal mortgage interest rate concessions. The report said it was unclear how much of the interest rate concession would fall, but said banks would offer different rates based on customer credit records.　　In addition, the report quoted the source as saying that BOC, in addition to reducing the rate of personal mortgage interest rates, also calls for a full increase in the interest rate of new property development loans. It is reported that China allows banks to provide home buyers up to 30% of the mortgage rate concessions, to provide customers with large interest rate discounts have become a common way for banks to compete for market share.　　However, because of China's lack of a perfect personal credit database, banks tend to issue loans without a rigorous review of their customers ' credit conditions. The surge in property prices since last year has sparked concerns about asset bubbles and prompted the China Banking Regulatory Commission to warn of risks associated with a possible deterioration in bank credit quality.　　The CBRC said last week it would tighten regulation of property-related loans. 2009 China's personal consumer housing loans accumulated new 1.4 trillion yuan, real estate development loans added 576.4 billion yuan. The sum accounted for 20% of the newly issued RMB 9.6 trillion yuan loan in 2009. (Snow Ting)