China Regulators Querying Banks on Mortgage Prepayment Strain
- Regulators, banks discuss adjusting rates on existing loans
- Officials call on banks to ensure mortgage prepayments
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China’s regulators are checking on how the nation’s major lenders are coping with the pressure from a wave of mortgage prepayments as homeowners take advantage of falling interest rates to reduce debt.
The China Banking and Insurance Regulatory Commission held a meeting late last week with banks with nationwide operations to discuss the latest wave of home loan prepayments, people familiar with the matter said, asking not to be identified discussing a private meeting. The banks were asked to report on the amount of loans affected as well as solutions to cope with the pressure, the people said.