Financial Associated Press (Beijing, reporter Jiang Fan) news, the risk situation of the real estate industry is one of the most concerned topics in the market for the performance of banks in the third quarter. The reporter of the Financial Associated Press combed the bank's third quarterly report and found that the bank has accelerated the processing of related risks brought by housing enterprises. At the same time, a number of banks said that the current asset quality of housing enterprises is generally controllable, but banks have upgraded the review of real estate loan-related businesses, eliminated stock risks, and set up a whitelist for credit access to housing enterprises. For personal housing mortgage loans, many banks said that they will still guarantee the credit demand for just need to buy a house.
According to the Financial Times, the People's Bank of China has recently conveyed the content of accurately grasping the policy requirements of prudent management of real estate finance, steadily carrying out real estate loan business and maintaining the smooth and orderly delivery of real estate credit in various places, and branches of the People's Bank of China in some areas have begun to provide window guidance according to local conditions. In the current situation, more institutions' real estate credit adjustment is adjusted across regions under the condition of total control.
Industry insiders said that the excessive contraction of risk appetite in financial institutions and financial markets is gradually being corrected. However, in the medium and long term, the general direction of real estate regulation will not change. It is expected that in the future, the proportion of financial resources invested in the real estate industry will continue to be further reduced, and more will give way to support for manufacturing, technological innovation, rural revitalization and other fields.
Banks upgrade the loan review mechanism for housing enterprises
The impact of housing enterprise risks on banks has been shown in the third quarterly report. Among the banks that disclose detailed data, the non-performing rate of banks' loans to public real estate and the proportion of concerned loans have increased.
For example, China Merchants Bank was affected by the credit risk exposure of some real estate enterprises, as of September 30, 2021, the bank's non-performing loan ratio to public real estate was 1.29%, an increase of 1.06 percentage points over the end of the previous year. At the same time, the risk exposure of the real estate industry has become one of the important factors for the bank to make provisions for non-credit assets.
Ping An Bank's concerned loans accounted for 1.37% in the third quarter, up 0.26 percentage points from the end of the previous year. Guo Shibang, vice president of Ping An Bank, said that the number of concern loans increased in the third quarter, mainly because of the liquidity problem of Baoneng, and Baoneng's loans are currently classified as concerns, but the related loans have not all been overdue.
Many banks believe that the marginal risk of real estate is declining, and the quality of related assets of housing enterprises is generally controllable. Banks have upgraded the review mechanism for housing-related loans and implemented a whitelist management system for relevant housing enterprises; at the same time, banks will also tilt the credit resources of housing enterprises towards just-needed housing.
China Merchants Bank said that for the real estate credit business that bears credit risks, the bank will continue to implement industry quota and customer limit management, focus on central cities and strategic customers, continue to adjust the structure of real estate customers and regional assets, continue to conduct comprehensive inspection and continuous tracking of real estate business and project fund supervision, real estate upstream and downstream industrial chains, and fully make provisions according to specific risk situations.
According to the executives of China Merchants Bank, in the investment direction of real estate development loans, the bank emphasizes the self-reimbursement of projects and strictly manages the closed management of real estate development loans; in the selection of development loan projects, the bank concentrates on just-needed and improved residential buildings in first- and second-tier cities, actively meeting the financing needs of just-needed housing while maintaining the stability of the self-reimbursable cash flow of the entire project.
Ping An Bank executives said that while strictly controlling the proportion of real estate loans, Ping An Bank has strengthened the risk control of real estate loans, and the bank will continue to implement the list system management. The list is updated semi-annually and will be a key indicator of customer credit. The bank also conducted risk checks on the existing real estate business and upgraded the requirements for closed management of funds. In terms of project selection, the bank will focus on selecting cities with net population inflow and strong industrial support, and the project will focus on selecting projects with location advantages, especially projects with good sales prospects and short planning cycles.
In addition, China CITIC Bank also said in the third quarterly report that the bank will resolutely implement the real estate regulation and control policy, classify and differentiate the management of real estate enterprises, and orderly promote the risk control of credit concentration.
Wang Yifeng, chief analyst of the financial industry of Everbright Securities, said that overall, the credit risk of banks is still controllable, while the marginal risk of real estate is declining, and the quality of bank assets will not be seriously affected by the real estate industry. In the fourth quarter, due to the impact of factors such as the tightening of real estate financing or the easing of social financing or the bottoming out, the cost performance of the banking sector after the release of risks will be improved, and may usher in layout opportunities.
Personal mortgages will ensure rigid demand
Since the second half of this year, a number of banks have tightened the issuance of personal housing loans. However, the data of the third quarterly report shows that the personal housing loans of banks that have disclosed data still maintain the growth momentum, but the growth rate has generally slowed down.
According to the data, the balance of personal housing mortgage loans of China Merchants Bank at the end of the third quarter was about 1.34 trillion yuan, an increase of 5.6% over the end of last year, while the bank's personal housing mortgage loans in the same period last year increased by 12.7% compared with the end of the previous year; the balance of residential mortgage loans at the end of the third quarter of Ping An Bank was 268.584 billion yuan, an increase of 12.2% over the end of the previous year, and this growth rate was slightly slower than the growth rate of 16.3% in the same period last year The balance of mortgage loans of Minsheng Bank was 570.427 billion yuan, an increase of 58.853 billion yuan over the end of the previous year.
This is in line with the overall situation in the banking sector. According to the data released by the central bank, in the first three quarters of this year, the balance of real estate development loans increased by only 0.02% year-on-year, and the growth rate of personal housing loan balances was 1.7 percentage points lower than that of the end of the previous quarter.
For the issuance of personal housing loans, many banks said that they will continue to support credit support for just-needed housing.
According to the executives of China Merchants Bank, in terms of housing mortgage loans, China Merchants Bank will resolutely implement the policy of "housing and not speculation" and vigorously support self-occupied just demand. Due to the impact of the real estate situation, next year's growth rate will also marginally slow down, but it will not stall, and it should be basically the same as this year's incremental arrangement.
Some state-owned bankers also told the Financial Associated Press reporter that the next regulatory level will not relax the regulation of the real estate industry, from the current bank mortgage lending situation, the first to meet the demand for the first home loan.
"At present, more than 90% of bank personal housing loans are first home loans." Liu Zhongrui, head of the Statistical Information and Risk Monitoring Department of the China Banking and Insurance Regulatory Commission, stressed at a press conference held by the State Council New Office a few days ago that next, the CBIRC should ensure the credit needs of just-needed groups, and support the first-home buyers in terms of loan down payment ratio and interest rate. In addition, the CBRC will also increase support for affordable rental housing, study and refine financial support measures, and work with the central bank to promote the pilot of real estate investment trusts.
Zeng Gang, deputy director of the National Finance and Development Laboratory, said that from the supply side, the regulatory authorities have repeatedly emphasized the need to give priority to ensuring just demand, and it is expected that all banks will increase the supply of funds. This does not mean that the policy has shifted, and the illegal misappropriation of business loans, consumer loans and other behaviors into the property market will still be cracked down on.
In addition, some bankers expect that the proportion of financial resources invested in the real estate industry will continue to be further reduced in the future, and will give way to more support for manufacturing, technological innovation, rural revitalization and other fields.
Postal Savings Bank said in the third quarterly report that the bank adheres to the strategic positioning of retail, and on the basis of maintaining the smooth delivery of housing loans, it increases the credit for personal consumption and small loans; the bank's corporate loans have also strengthened financial support for small and micro enterprises, and increased capital investment in key areas such as manufacturing, green credit, and private enterprises.
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