One of China’s big state-owned banks has responded to concerns about the health of its home loan portfolio, amidst widespread uncertainty on the Chinese real estate market.
On 14 June Postal Savings Bank of China (PSBC) said initial inspections that determined that suspended building projects affect around 127 million yuan of its home loans.
According to PSBC the amount is comparatively small however, and risk in relation to the loans is “controllable”.
PSBC said that its home loan balance is currently in excess of 2 trillion yuan, with an average loan sum of around 440,000 yuan.
“The real estate non-performing loan ration is comparatively low by industry standards,” PSBC said in an official statement.
PSBC said that in future it would uphold the directives of the party and the State Council, and maintain the official position that “homes are for occupation, not speculation.”
PSBC will also provide repayment extensions and credit protection to customers affected by the Covid pandemic.