(iStock)
In an effort to curb a possible housing bubble, China’s central bank has issued a new mandate for lenders: Limit the number of loans you’re offering.
The People’s Bank of China announced the new regulations, which will affect loans to both developers and property mortgages, earlier this week, Bloomberg News reported. The new regulations, issued along with the China Banking and Insurance Regulatory Commission, call for limiting loans to developers to 40 percent for state-owned lenders, while mortgages can make up no more than 32.5 percent of a bank’s outstanding credit. The new regulations took effect Jan. 1.