Mortgage prepayment has increased significantly. The central bank responds: Prepayment objectively also has a certain impact on the income of commercial banks.

2023-07-14 06:18:16

Early repayment of housing loans has increased significantly. The central bank responded: Early repayment objectively has a certain impact on the income of commercial banks.

2023-07-14 14:18:16 Source: Hot News Shared to:

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Today, the State Council Information Office held a press conference on financial statistics for the first half of 2023. The press conference responded to hot topics in the current economic field.

Zou Lan, director of the Monetary Policy Department of the People’s Bank of China, said that in the first half of this year, a total of 3.5 trillion yuan of personal housing loans were issued, which was more than 510 billion yuan more than the same period last year, and the support for housing sales has increased significantly. However, the statistics show that the overall balance of personal housing loans has slightly decreased. This is mainly because the price relationship such as wealth management yields and mortgage interest rates has changed, and the phenomenon of residents using deposits or reducing other investments to repay existing loans in advance has increased significantly.

This phenomenon does not affect housing demand, it is an adjustment of residents’ asset allocation. Although the quoted interest rate in the loan market has dropped by 0.45 percentage points, because the rate of increase agreed in the contract is fixed within the contract period, the interest rate of stock mortgages issued in previous years is still at a relatively high level. There is a relatively large relationship between a substantial increase in payment. Objectively, early repayment also has a certain impact on the income of commercial banks. In accordance with the principles of marketization and the rule of law, we support and encourage commercial banks to independently negotiate with borrowers to change contractual agreements, or to replace existing existing loans with new loans.

The latest financial statistics show that in June, resident loans increased by 963.9 billion yuan, a sharp increase of 115.7 billion yuan year-on-year. Among them, short-term residential loans represented by consumer loans increased by 491.4 billion yuan, an increase of 63.2 billion yuan year-on-year; medium and long-term loans represented by individual housing loans increased by 463 billion yuan, an increase of 46.3 billion yuan year-on-year.

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