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Bank mortgage pressure test a more granular

regulation of China's real estate as the Government gradually increased on new round of mortgage commercial bank stress tests will be launched. Stress testing is a quantitative risk analysis methods, to measure Bank assumes losses that may occur in extreme cases, loss analysis for bank credit asset quality, profitability and negative impact of the capital. Potential risks can be determined according to the results of the stress tests of banks, and develop appropriate policies and plans.

yesterday, the CBRC official said, the stress tests compared with the last test, this scenario assumes a more nuanced, distinction between high-risk areas and the General area. Meanwhile, risk factors more fully, taking into account a variety of extreme situations; testing is more extensive, with more attention to the scientific rigour of the stress-test process. But this does not represent the CBRC judgment on China's real estate market, nor indicate changes in the country's macro-control policy to.

in May 2010, China had conducted a stress test, stress test showed that, under strict regulation of real estate, if fallen to extreme situations, banks can still carry the risk of bad debts. According to reports, this real estate stress test scenarios such as in addition to a decline in housing transactions area, also raised the decline in house prices of light, medium and heavy three standards.

 

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