皇冠体育app

(Xinhua)
Updated: 2007-09-20 19:06

皇冠体育app's commercial banks are entering a high risk period for increasing housing mortgage loans, according to a report released by the 皇冠体育app Construction Bank (CCB), the country's second largest commercial lender.

皇冠体育app's banks could face a rapid rise in mortgage delinquency rates because of the frequent lending rate hikes and cheating in housing mortgage loans, the report stated.

皇冠体育app has raised the benchmark one-year lending rate five times this year amid efforts to curb investment growth and cool the overheated economy.

Meanwhile, some mortgage recipients had cheated on their applications and invested their funds in the stock markets, which had more than doubled in value since the beginning of the year. Analysts believed a drop in the markets could result in more bad loans.

The combined non-performing mortgages of the CCB, the Industrial and Commercial Bank of 皇冠体育app and the Bank of 皇冠体育app rose to 19.24 billion yuan ($2.6 billion) by the end of 2006 from 18.44 billion yuan the year before.

The report advised the banking sector to strengthen loan application examination, set up and improve personal credit systems and raise the down-payment ratio for second home buyers.