A story has been going around the rumourmill that the Agricultural Bank of China will stop issuing mortgage loans. But Zhang Yun, president of the bank, has clarified, saying the bank was merely halting loans temporarily, for the sake of adjusting its debt structure to its corporation clients.
Zhang Yun, President of AgBank, explained that he has no intention to stop mortgage loans. Zhang said the halt to corporation was temporary, lasting from August 24 to August 31st, and will resume September 1st.
Zhang Yun, President of AGBank of China said "We didn't get any orders from authorities requiring us to stop mortgage loans. Our decision was purely made in accordance with our own loan structures and business framework. But we didn't stop issuing all of them in August. We still granted some after being authorized by headquarters. I believe the property lending will go back to normal in September."
Zhang explains that despite AgBank's increasing number of loans in the first half of the year, the bank's risks are under control.
By the end of June, AgBank had maintained mortgage loans at a total of 1.18 trillion yuan. That's the smallest among the four state-owned commercial banks.
- ABC halts loans to property developers 2010-08-26