China bank watchdog says property loan risk under control but steps up oversight

China's banking regulator said on Friday it was stepping up oversight to prevent risks from some failed property developers from spreading into the broader financial system, but said overall risk from property loans was controllable. The China Banking Regulatory Commission (CBRC) also urged commercial banks to work out emergency plans to mitigate risks stemming from the property sector, in a bid to ease investors' worries that the cooling real estate market could fuel an increase in bad loans. "The overall risk of loans to the property sector is under control, as the proportion of property loans in total bank lending is not very high," Wang Junshou, a deputy director at the general office of CBRC, told reporters at a news conference to present its annual report.



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