CFIC Introduction
On May 17, the Notice of the People's Bank of China and the State Administration of Financial Supervision on Adjusting the Policy on the Minimum Down Payment Ratio of Personal Housing Loans, the Notice of the People's Bank of China on Adjusting the Interest Rate Policy for Commercial Personal Housing Loans, and the Notice of the People's Bank of China on Reducing the Interest Rate of Personal Housing Provident Fund Loans were issued.
Original title: Real estate move! At noon on May 17, the People's Bank of China reported on its website that the People's Bank of China issued a notice saying that it would cancel the lower limit of the interest rate policy for commercial personal housing loans for the first and second houses at the national level.
The provincial-level branches of the People's Bank of China, in accordance with the principle of city-specific policies, guide the self-discipline mechanism of market interest rate pricing at the provincial level, and independently determine whether to set the lower and lower limits (if any) of the interest rates of commercial personal housing loans in each city within their jurisdiction according to the real estate market situation of each city within their jurisdiction and the regulatory requirements of the local government. Banking financial institutions should be based on the provincial market interest rate pricing self-discipline mechanism to determine the lower limit of interest rates (if any), combined with the institution's operating conditions, customer risk status and other factors, reasonable determination of the specific interest rate level of each loan. On the same day, the People's Bank of China and the State Administration of Financial Supervision and Administration issued a notice on adjusting the minimum down payment ratio for individual housing loans. The notice clarifies that for resident households who take out loans to purchase commercial housing, the minimum down payment ratio of commercial personal housing loans for the first house is adjusted to not less than 15%, and the minimum down payment ratio for commercial personal housing loans for second houses is adjusted to not less than 25%.
On this basis, the provincial-level branches of the People's Bank of China and the dispatched agencies of the State Financial Supervision and Administration independently determine the lower limit of the minimum down payment ratio for commercial personal housing loans for the first and second houses in each city under their jurisdiction in accordance with the requirements of urban regulation and control and in accordance with the principle of city-specific policies. On the same day, the People's Bank of China issued a notice on lowering the interest rate of personal housing provident fund loans. The notice clarifies that the People's Bank of China has decided to reduce the interest rate of personal housing provident fund loans by 0.25 percentage points from May 18, 2024, the interest rate of the first set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be adjusted to 2.35% and 2.85% respectively, and the interest rate of the second set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be adjusted to not less than 2.775% and 3.325% respectively.
(All pictures in the article are from the website of the People's Bank of China)
Source of this article: China Securities Journal
Authors: Ouyang Jianhuan, Peng Yang
WeChat editor: Guan Qiao
Introduction to "Risk Warning: Financial Edition".
Finance is the lifeblood of the modern economy, and financial stability leads to economic stability. Financial security is related to the overall development of national and regional enterprises, and it is necessary to maintain a high degree of vigilance against financial risks at all times, enhance the awareness of risk prevention, respond scientifically, and prevent them from occurring. Under the guidance of the authoritative government departments, relying on the advanced big data public opinion monitoring system and a professional analyst team, the "Risk Warning Financial Edition" produced by the China Financial Information Center summarizes, analyzes, and judges the risk public opinion in different fields and categories of the financial industry, and provides authoritative, professional, practical, timely and effective financial risk public opinion monitoring, research and judgment, early warning and response suggestions for financial regulatory departments, factor markets, financial institutions, listed companies, industry associations, various enterprises, colleges and universities, research institutions, etc. 18,000 per year, once a week, released every Friday.
Latest Report:
【2024 May No.1】No.125: Credit card scenery is no more?
【April 2024 Issue 4】Total Issue 124: Regulatory penalties for public funds are exposed
【April 2024 Issue 3】Total Issue 123: Industry Reshuffle! How to break the game?