Chinanews Client, March 26. On March 26, the General Office of the China Banking and Insurance 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 issued a notice on preventing the illegal flow of loans for business purposes into the real estate sector.
The notice requires strengthening post-loan management. Banking financial institutions should inform borrowers in writing of the legal risks and related impacts of using credit funds for house purchases in violation of regulations. When signing loan agreements with borrowers, they should sign a letter of commitment for the use of funds to clarify. Once it is discovered that the loan has been misappropriated in the real estate sector, the loan will be immediately recovered, the credit line will be reduced, and the corresponding legal responsibility will be pursued.