The China Banking and Insurance Regulatory Commission (CBIRC) is launching special inspections of 75 banks in 30 cities later this year to crack down on violations by institutions in lending to property developers and home buyers, as part of a campaign to curtail speculation in the reviving property market, reported Caixin.
A CBIRC official said the plan to inspect property loans was set at the beginning of the year. The inspection of banks follows a series of measures launched recently targeting property sector financing, reflecting authorities’ concerns of reviving market speculation as land sales and property transactions rebound.
The CBIRC in May issued a policy document enumerating violations in property loans, including providing off-the-books loans to fund land purchases, lending to unqualified developers and allowing homebuyers to use borrowed money for down payments, among others.
