For individuals whose loan funds flow into the housing market, there are two ways of punishment: one is to collect the loan in advance and ask for the settlement of all the loans. The second is to double the interest. According to China's relevant laws, credit funds are diverted to the real estate sector: First, personal comprehensive consumer loans, business loans, "down payment loans", credit card overdrafts and other funds are diverted to the real estate sector in violation of regulations. Second, funds illegally flow into the real estate market through shadow banking channels. Third, M&A loans, operating property loans and other loans are not strictly managed, and funds are misappropriated for real estate development. The fourth is to provide financing for real estate development projects through working capital credit and operating property credit.
legal ground
Article 4 of the Notice of the General Office of China Banking Regulatory Commission on Special Inspection of Real Estate Business of Banking Financial Institutions in 20 19 stipulates that credit funds are diverted to the real estate sector: first, personal comprehensive consumer loans, business loans, "down payment loans", credit card overdrafts and other funds are diverted to the real estate sector in violation of regulations. Second, funds illegally flow into the real estate market through shadow banking channels. Third, M&A loans, operating property loans and other loans are not strictly managed, and funds are misappropriated for real estate development. The fourth is to provide financing for real estate development projects through working capital credit and operating property credit.
A number of banks warned that commercial loans should not illegally flow into the real estate market.
The supervision to prevent operating loans from illegally flowing into the real estate sector continues. Following the Notice on Preventing Operating Loans from Illegally Flowing into the Real Estate Sector issued by the CBRC and other departments in March this year, the Agricultural Bank of China (60 1288, Share Bar) recently issued the Notice on Restricting the Use of Operating Loan Funds of the Bank, stating that "the operating loan funds handled by the Bank shall be used in accordance with the provisions of national laws and regulations and the purposes agreed in the loan contract, and shall not illegally flow into the real estate sector." The reporter found that before this, Maguan Rural Commercial Bank, China Postal Savings Bank, Lianshan Rural Commercial Bank and other banks issued similar announcements, all of which involved restricting the illegal flow of commercial and consumer loan funds into real estate and other fields.
A number of banks issued announcements prohibiting commercial loans from flowing into the real estate market.
According to the announcement issued by the Agricultural Bank of China on May 14, the loan funds for business purposes handled by users in this bank shall be used in accordance with the provisions of national laws and regulations and the purposes agreed in the loan contract, and shall not flow into the real estate field in violation of regulations, including but not limited to: they shall not be used for real estate development or operation, purchase of houses or commercial houses, or other fields and uses prohibited by the state. In case of violation of the above requirements, the bank has the right to immediately recover the loan that has been issued, reduce or cancel the loan amount that has not been withdrawn under the loan contract, and exercise various remedies for breach of contract according to the loan contract.
On the same day, Maguan Rural Commercial Bank also issued the Announcement on the Restrictions on the Use of the Bank's Operating Loans, which mentioned that operating loans should not flow into the real estate sector in violation of regulations. If users violate regulations, banks can immediately recover the loans they have issued.
Previously, on April 15, the Postal Savings Bank issued the Announcement on the Restrictions on the Use of Personal Business Loans, pointing out that personal business loans should be used according to the purposes agreed in the loan contract, and can only be used for legitimate production and business activities, and may not be used to purchase real estate, securities, commercial insurance, funds, wealth management products, futures, equity, real estate development projects, etc. , or used in other prohibited areas or engaged in illegal business activities. In case of violation of relevant contracts, the bank has the right to immediately recover the loan and freeze the credit line, and the borrower shall bear corresponding legal responsibilities.
In the reporter's previous investigation, a person from the Bank of Beijing revealed that some commercial banks under Beijing's jurisdiction have been recovering illegal credit funds flowing to the property market in accordance with the notice of early maturity of personal loans, requiring customers to return them in advance.
In this regard, Wang Hongying, president of China (Hongkong) Financial Derivatives Investment Research Institute, said that the main reason why commercial banks prohibit operating loans from flowing into the property market is to prevent low-interest loans that should be used to support the recovery of the real industry after the epidemic from being used for real estate speculation or stock market investment. As the main supporters of rural economic credit are Agricultural Bank of China and Postal Savings Bank of China, the recent announcements issued by these two big banks have actually played a demonstration role in rectification. In Wang Hongying's view, city commercial banks, rural commercial banks and rural financial institutions, which are located in local farmers and small and micro enterprises, will also carry out related work. According to the reporter's statistics, recently, Lianshan Rural Commercial Bank, Shantou Gulf Rural Commercial Bank, Xinxing Rural Commercial Bank, Yijinhuoluojingu Rural Bank, Tianjin Binhai Jianghuai Rural Bank, Chizhou Jiuhua Rural Commercial Bank, Taihu Rural Commercial Bank and many other banks have issued similar announcements, all of which involve restricting the illegal misappropriation of personal business or consumer loans to real estate and other fields.
Prevent commercial loans from flowing into the real estate market and strengthen supervision.
The announcements issued by banks in succession are obviously related to the fact that the regulatory authorities strictly investigate the illegal inflow of personal business loans into the property market.
In March this year, the General Office of the China Banking Regulatory Commission, the General Office of the Ministry of Housing and Urban-Rural Development and the General Office of the People's Bank of China jointly issued the Notice on Preventing Operating Loans from Illegally Flowing into the Real Estate Sector, clarifying that banking financial institutions should strengthen the requirements of "three inspections" of operating loans (i.e. pre-lending investigation, in-lending examination and post-lending inspection) to prevent operating loans from illegally flowing into the real estate sector and better support the development of the real economy.
Regulators in many places have also issued notices to prevent commercial loans and consumer loans from illegally flowing into the property market. For example, in early April, the Housing Security and Real Estate Administration of Hefei City, Anhui Province issued the Notice on Further Promoting the Stable and Healthy Development of the Real Estate Market in our city, requesting to strengthen the examination of the source of down payment funds, the minimum down payment ratio, the proportion of debt service income and the eligibility of individual housing loans, and seriously investigate and deal with the illegal flow of operating loans into the real estate market. On May 8, the Office of the Coordination Group for Sustainable and Healthy Development of the Real Estate Market in Shaoxing City, Zhejiang Province issued the Notice on Further Promoting the Stable and Healthy Development of the Real Estate Market in Shaoxing City, which clearly and strictly examined the source of down payment funds for house purchase, and severely investigated and dealt with the illegal purchase of houses by credit funds such as consumer loans and business loans.
The reporter found that the recent fines imposed by regulators on illegal loans flowing into the real estate market have also appeared intensively. On May 14, Ningbo Yinzhou Rural Commercial Bank was also fined 215,000 yuan due to the illegal inflow of loan funds into the real estate market. Not long ago, Wenzhou Bank Shanghai Branch and Qingdao Pingdu Huimin Village Bank were also punished for personal consumption loans or business loans illegally flowing into the property market.
Wang Hongying suggested that in the future, regulators and banks can prevent funds from leaving the real estate industry and entering the real estate market through big data tracking and closed-loop operation of credit funds. At the same time, strict disciplinary measures should be introduced, such as timely and unconditional recovery of loans from enterprises that misappropriate real estate credit funds, blacklisting them, and stopping credit support for the enterprises in the future. "Only in this way can we really control the flow of funds into the real estate market." Wang Hongying said.
Where can personal business loans be used?
1. It is used for the borrower's normal capital needs in legal investment activities, such as temporary and seasonal liquidity turnover in the process of continuous operation, purchase (maintenance) of related equipment, decoration of business premises, etc.
2. Encourage the Bank to issue personal business loans to industries supported by the state, such as manufacturing, wholesale, retail, logistics and transportation, as well as enterprises with good operating conditions and clear main business.
3. Personal business loans are used to support the development of individual industrial and commercial enterprises and private economy, but bank loans will face certain risks for industries that do not meet the national industrial policy and are overheated.
4. It is forbidden to use loan funds for real estate development and land reserve.
5. Personal business loans shall not flow into the securities market, futures market or be used for equity investment or real estate project development in any form.
6. It is forbidden to issue this loan to enterprises with potential safety hazards, poor product quality, poor market sales, "high energy consumption" and "high pollution".