Two departments: extending the policy period related to financial support for the stable and healthy development of the real estate market. Real estate | finance | market
The headquarters of the People's Bank of China in Shanghai, various branches and business management departments, central branches in provincial capital cities, and central branches in sub provincial cities; Each banking and insurance regulatory bureau; China Development Bank, Agricultural Development Bank, commercial banks in various countries, Postal Savings Bank of China, and various joint-stock commercial banks; Trust companies, insurance companies, and financial asset management companies:
The Notice of the People's Bank of China and the China Banking and Insurance Regulatory Commission on Doing a Good Job in the Stable and Healthy Development of the Current Financial Support Real Estate Market. If the relevant policies have an applicable period, the applicable period will be uniformly extended to December 31, 2024.
The People's Bank of China
State Administration for Financial Supervision and Administration
July 10, 2023
Attachment: Answering Journalist's Questions
Notice from the person in charge of the People's Bank of China and the State Administration of Financial Supervision and Administration on Extending the Policy Deadline of Financial Support for the Stable and Healthy Development of the Real Estate Market
Q: What is the background for the introduction of this policy?
Answer: On November 11, 2022, the People's Bank of China and the former China Banking and Insurance Regulatory Commission jointly issued the "Notice on Doing a Good Job in Financial Support of the Stable and Healthy Development of the Real Estate Market". From the aspects of maintaining stable and orderly real estate financing, actively providing financial services for guaranteed delivery of buildings, cooperating with distressed real estate enterprises to handle risks, and increasing financial support for housing leasing, 16 support policies were clarified, of which two policies set applicable deadlines. After the implementation of the Notice, it has played a positive role in maintaining reasonable and moderate real estate financing, promoting the resolution of risks for real estate enterprises, and achieved good policy results. Taking into account the current situation in the real estate market, in order to guide financial institutions to continue extending the existing financing of real estate enterprises and increase financial support for guaranteed delivery of buildings, the People's Bank of China and the State Administration for Financial Supervision have decided to extend the applicable period of relevant policies.
Q: What are the two policies involved in the extension?
Answer: The policy extension involves two aspects:
Firstly, for the existing financing of real estate enterprises such as development loans and trust loans, while ensuring the safety of creditor's rights, financial institutions and real estate enterprises are encouraged to negotiate independently based on commercial principles, actively support through methods such as extending existing loans and adjusting repayment arrangements, and promote project completion and delivery. For loans that expire before December 31, 2024, an extension of one year beyond the original regulations is allowed, and the loan classification may not be adjusted. The loan classification submitted to the credit reporting system shall remain consistent with it.
Secondly, for commercial banks that provide supporting financing to special loan support projects before December 31, 2024 in accordance with the requirements of the Notice, the risk classification will not be lowered during the loan term; After the debt is divided between new and old, the lending entities shall be managed as qualified borrowing entities. For newly issued supporting financing that results in non-performing loans, relevant institutions and personnel who have fulfilled their duties can be exempted from liability.
Except for the two policies mentioned above, other policies that do not involve applicable deadlines are valid for the long term. Financial institutions should effectively implement policies in accordance with the requirements of the documents, support the demand for rigid and improved housing based on urban conditions, maintain reasonable and moderate real estate financing, increase financial support for guaranteed delivery of buildings, promote market-oriented clearance of industry risks, and promote stable and healthy development of the real estate market.