On January 26th, the General Administration of Financial Supervision held a meeting to deploy and promote the implementation of the coordination mechanism of urban real estate financing.
The two departments held a meeting on the same day to deploy a coordination mechanism for urban real estate financing.
Earlier on the same day, the Ministry of Housing and Urban-Rural Development also held a deployment meeting of urban real estate financing coordination mechanism, requiring all localities to study and put forward a list of real estate projects that can be given financing support, coordinate the issuance of loans by financial institutions within their respective administrative areas, and accurately and effectively support reasonable financing needs. It is understood that before the end of this month, the first batch of projects can win loans after landing.
On January 12th, the Ministry of Housing and Urban-Rural Development and the General Administration of Financial Supervision jointly issued the Notice on Establishing the Coordination Mechanism of Urban Real Estate Financing (hereinafter referred to as the Notice), requiring cities at or above the local level to establish the coordination mechanism of urban real estate financing.
The working meeting held by the General Administration of Financial Supervision pointed out that the coordination mechanism is an important measure to implement the decision-making arrangements of the Central Financial Work Conference, meet the reasonable financing needs of real estate enterprises with different ownership equally, and promote the virtuous circle of finance and real estate.
Specifically, the Notice clarifies that the coordination mechanism, based on the development and construction of real estate projects and the qualifications, credit and finance of project development enterprises, puts forward a list of real estate projects that can be given financing support in accordance with the principle of fairness and justice, and pushes it to financial institutions within their respective administrative regions. Financial institutions shall evaluate the support objects pushed by the coordination mechanism according to the principles of marketization and rule of law, and actively meet the reasonable financing needs for projects with normal development and construction, sufficient collateral, reasonable assets and liabilities and guaranteed repayment sources; For projects that encounter temporary difficulties in development and construction, but the funds can be balanced, we should not blindly draw loans, pressure loans or cut off loans, but give greater support through the extension of existing loans, adjustment of repayment arrangements and new loans.
Li Yujia, chief researcher of the Housing Policy Research Center of Guangdong Urban and Rural Planning Institute, pointed out that the purpose of establishing a coordination mechanism this time is to establish a docking platform so that both banks and enterprises can fully communicate, and whether or not loans still need to follow the bank risk control and credit approval process.
Strengthen the closed management of funds and prevent misappropriation.
Xiao Yuanqi, deputy director of the General Administration of Financial Supervision, made a "notice" when he attended the press conference on high-quality economic and social development of financial services held by the State Council yesterday. Recently, the General Administration of Financial Supervision will hold a relevant work deployment meeting, asking banks to act as soon as possible, and under the lead coordination of the urban people’s government, together with the housing and construction departments, make good use of the policy toolbox because of the city’s policy, and more accurately support the reasonable financing needs of real estate projects.
The General Administration of Financial Supervision pointed out that the coordination mechanism should strengthen information sharing and provide relevant financial institutions with information such as project construction and operation and pre-sale fund supervision in a timely manner. It is necessary to guide financial institutions to negotiate with real estate development enterprises on an equal footing, make independent decisions and implement them according to the principles of marketization and rule of law, and protect the legitimate rights and interests of financial institutions.
At the same time, the General Administration of Financial Supervision stressed at this meeting that financial institutions should attach great importance to it, strengthen organizational leadership, establish internal mechanisms and clarify working rules. For projects that meet the credit conditions, it is necessary to establish a green channel for credit granting, optimize the approval process, shorten the approval time limit, and actively meet the reasonable financing needs. For projects that encounter temporary difficulties in development and construction, but the funds are basically balanced, we will not blindly lend, cut off loans, or press loans, but support them by extending existing loans, adjusting repayment arrangements, and adding new loans. At the same time, financial institutions should strengthen the closed management of funds to prevent the misappropriation of credit funds.
"All supervision bureaus should actively participate in the coordination mechanism, actively cooperate with local governments and housing construction departments, carry out related work in a steady and orderly manner, jointly promote the effectiveness of the coordination mechanism and promote the stable and healthy development of the real estate market." The General Administration of Financial Supervision said.
Editor: Wang Yunpeng
Proofreading: Li Lingfeng