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China central bank tells banks to quicken mortgage lending: sources

Published on May 13, 2014 4:30 PM

BEIJING/HONG KONG (Reuters) - China's central bank has asked commercial banks to speed up the granting of home loans and to set mortgage rates at reasonable levels, four sources told Reuters on Tuesday, underlining its efforts to support the flagging property market as the economy cools.

But bankers also expressed doubt that such so-called "window guidance" from the central bank would have a significant impact on bank lending practices.

The People's Bank of China (PBOC) made the request for greater mortgage lending at a meeting with commercial banks on Monday, the sources said.

Tight mortgages are considered one of the reasons for the cooling of property market this year, as banks have raised home loan rates for first-time buyers or delayed the granting of mortgages because of tighter liquidity.

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