BEIJING, Sept. 24 -- China's four major commercial banks have expressed veiled supportfor a mortgage policy change by the central bank rumored to be launched in the nearfuture.
The Bank of China (BOC) said on Wednesday it has authorized local branches to adjusttheir practice based on market and policy changes, applying adjusted loan applicationmethods.
The BOC said its practice will be market oriented and they will carry out active measuresto meet rational housing demands.
Releasing a nearly identical statement, the Agricultural Bank of China said it will putmortgages for first-time home purchases as priority and improve the structure of itslending to the property sector.
Both banks vowed to accelerate their mortgage approval process.
Their announcements followed responses from the other two giant banks, the Industrialand Commercial Bank of China and China Construction Bank, that demonstratedsupportive attitudes on Tuesday.
The People's Bank of China (PBOC), the central bank, reportedly asked the four big banksto relax their mortgage rules, which will require a lower down payment on the purchase ofa second home amid the sluggish property market.
Experts said, if true, the move will satisfy rational housing demands which have beenrestrained since the government started anti-speculation campaign to cool the propertymarket in 2010.
The once-heated market has started to chill. Government data revealed more citiesreported month-on-month price drops in August as new homes in 68 saw price declinesout of 70 major Chinese cities surveyed, compared with 64 in July.
