Hong Kong Concerned About Risks From Developer Mortgages
- HKMA may ask banks to take additional steps to manage exposure
- Gathering information from banks on finance company lending
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Hong Kong’s de facto central bank expressed concern about the riskiness of mortgages with high loan-to-value ratios issued by developers, as some analysts are warning that property prices in the city are unsustainable.
“The accumulation of these high LTV mortgages may change the risk profiles of these property developers to which banks may have exposures,” Raymond Chan, executive director for banking supervision at the Hong Kong Monetary Authority, said in an emailed response to queries from Bloomberg. The HKMA said it may ask banks to take additional steps to manage their exposure to the sector.