Today, the people’s Bank of China and the Bank Of China Limited(601988) Insurance Regulatory Commission issued the notice on excluding the loans related to indemnificatory rental housing from the management of real estate loan concentration, which made it clear that the loans related to indemnificatory rental housing projects would not be included in the management of real estate loan concentration, and encouraged banking financial institutions to follow the principles of legal compliance, controllable risk and commercial sustainability, Increase support for the development of affordable rental housing.
In addition, it is also clear that the loans related to affordable rental housing projects are not included in the concentration management of real estate loans, which is conducive to the banking financial institutions to increase the credit supply of affordable rental housing projects, support the construction of China’s housing security system, and promote the establishment of a housing system with multi-body supply, multi-channel security and simultaneous rental and purchase. Next, the people’s Bank of China and the China Banking and Insurance Regulatory Commission will accelerate the establishment and improvement of the housing rental financial system, continue to increase financial support for the construction of affordable housing and the development of the long-term rental housing market, and promote the virtuous circle and healthy development of the real estate industry.
real estate enterprises should take the initiative to grasp
Yan Yuejin, research director of the think tank center of E-House Research Institute, believes that the policy plays a positive role in alleviating the concerns of real estate enterprises, actively applying for loans and developing affordable rental housing.
According to Yan Yuejin’s analysis, the central bank’s policy has put forward two important contents. First, loans related to indemnificatory rental housing are not included in the concentration management of real estate loans. Second, the loan intensity of indemnificatory rental housing should be increased. from these two points, the starting point of the policy is to provide stronger loan support for affordable rental housing. Due to the maintenance of the housing loan concentration policy, it has been appropriately loosened to reduce concerns. Due to the large financial pressure of real estate enterprises at present, if the three red lines also need to include loans in the assessment, the motivation of real estate enterprises to apply for such loans is very weak, which will affect the construction and supply of affordable rental housing. This policy is the second example of loosening the housing loan concentration policy after the M & a loan withdrew from the housing loan concentration assessment.
The policy can be understood from two perspectives: from the perspective of the development of the affordable rental housing market, this is an important policy to relax and encourage the credit policy, and truly promote the development of affordable rental housing in the field of housing loan. From the perspective of mortgage concentration, it actually reflects the loosening of mortgage concentration policy. Previously, it was M & A loans, but this time it was guaranteed rental housing loans. The two types of loans were not included in the assessment of housing loan concentration, which not only shows that the general direction of housing loan concentration policy remains unchanged, but also reflects the active optimization of housing loan concentration policy. The central bank’s policy will enhance the motivation of real estate enterprises to apply for loans and provide greater impetus for the faster and better development of affordable rental housing this year.
Yan Yuejin believes that for real estate enterprises, such policies should be accurately understood.
First, in 2020, the central bank issued the notice on establishing the real estate loan concentration management system of banking financial institutions. This policy mentioned that the loans related to real estate leasing will not be included in the calculation of the proportion of real estate loans for the time being. Therefore, from the perspective of the new policy of the central bank, in fact, the ideas are similar, but from the past market-oriented rental housing to indemnificatory rental housing. In other words, the current affordable rental housing is a key product, and the original housing loan concentration policy needs to keep pace with the times and actively cooperate.
Second, the indemnificatory rental housing in this reform must have the certificate of indemnificatory rental housing project. In other words, real estate enterprises cannot identify such houses by themselves. They must obtain the certificate of such projects before they can realize the exemption clause of housing loan concentration.
Third, real estate enterprises should take the initiative to make efforts in such products, which is the key housing loan product promoted by commercial banks in 2022. Real estate enterprises should take the initiative to grasp such credit opportunities.
banks will actively lend
Li Yujia, chief researcher of Guangdong housing policy research center, believes that this policy has improved the enthusiasm of bank lending and promoted the transformation of real estate financing. The scale of commercial housing loans is limited, and the scale of guaranteed rental housing loans is not limited, and the interest rate is preferential. It is intended to adjust the bank asset structure and promote the development of Inclusive Finance. Its logic is completely consistent with supporting small, medium and micro entity loans. The central bank and the China Banking and Insurance Regulatory Commission also said this time that accelerating the establishment and improvement of the housing rental financial system is to allocate a responsive financial support system for the new housing supply system, so as to promote the transformation of the real estate industry.
It should be noted that the guaranteed rental housing loan is still under the development loan subject. It is invested according to the development loan logic, with a maximum of 80% of the total loan investment and 20% of the project capital. The specific loan proportion has a great relationship with the project construction subject, location, rental rate prediction, etc. Next, with the establishment of the housing rental financial system, the bank will list the subject of guaranteed rental housing loans separately, and establish a completely different loan management system for such loans in terms of identification, delivery, pricing and repayment.
Li Yujia also said that the effect remains to be seen. Although the state strongly encourages guaranteed housing loans, due to the low interest rate of guaranteed housing, most of them have no collateral or high credit rating guarantee, and the enthusiasm of banks is not high. It remains to be seen how large it can be in the future. In my opinion, the state-owned enterprises, central enterprises, large-scale high-quality private enterprises (Vanke, Longhu, green city) and local urban investment platforms will be the main ones in the future. Because this type of construction subject meets the needs of banks in terms of collateral and credit rating. In addition, in addition to development, innovation should also be made to meet the needs of this industry for the transformation of guaranteed rental housing, working capital loans and material procurement loans in operation.
