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China regulator launches new probe into banks' property loan exposure

The China Banking and Insurance Regulatory Commission (CBIRC) is looking at banks' loan book exposure to developers to find out if those credit decisions were made according to the rules

Evergrande Group
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While Chinese banks have the biggest exposure to local developers and homebuyers, such as Evergrande Group, foreign lenders including HSBC Holdings and Standard Chartered lend to property firms.

Reuters Shanghai/Beijing
China's banking regulator is scrutinising property loan portfolios of some local and foreign lenders to assess systemic risks, sources with knowledge of the matter said, as a crisis in the real estate sector worsens and weighs heavily on the economy.

As part of their assessment, the China Banking and Insurance Regulatory Commission (CBIRC) is looking at banks' loan book exposure to developers to find out if those credit decisions were made according to the rules, one of the sources said.

The aim is to measure risks to the financial system from the ongoing property sector turmoil in the world's second-largest economy, two

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First Published: Aug 18 2022 | 11:30 PM IST

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