Chinese regulators are pushing banks to speed up approvals of new loans to cash-starved private property developers, people with knowledge of the matter said, a bid to revive homebuyer sentiment that risks denting lenders' asset quality.Chinese regulators are pushing banks to speed up approvals of new loans to cash-starved private property developers, people with knowledge of the matter said, a bid to revive homebuyer sentiment that risks denting lenders' asset quality.
Now the banking regulator wants faster loan approvals for residential projects under the "whitelist" mechanism, with effect from last week, the sources said, a demand that Reuters is reporting for the first time. Developers and bank statements say banks have been reluctant to grant new loans to property projects, while mostly extending maturity and lowering interest rates of existing loans.The "whitelist" program covers projects of state-backed and private developers that need fresh financing of 1.5 trillion yuan , one of the sources said.
Launched in January, the "whitelist" enables city governments to recommend suitable residential projects to banks for financial support, and to coordinate with them to meet project needs.