Pursuits
Hong Kong Warns on Home Loan Risks, Daily Says, as Prices Soar
- Monetary authority sends letters to banks expressing concern
- Citigroup sees new set of property curbs coming any time now
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The Hong Kong Monetary Authority has warned banks in the city over the rising risks of property lending, according to the Oriental Daily, just as home prices notch up another record in the world’s most expensive housing market and Citigroup Inc. sees an imminent round of new cooling measures.
The authority sent letters this week raising concern over the increasing number of highly leveraged mortgages provided by developers, which boosts risks for banks lending to these companies, according to the Daily and other media reports on Saturday, citing unidentified people. It may tighten risk management and said banks should be prudent when lending to clients who buy multiple units with a single contract, the reports said.