ICBC plans to restrict lending to property developers

Industrial and Commercial Bank of China (ICBC) said Monday that it will stop lending to property developers that hoard land and may even call in some loans to ease credit risks, Reuters reported. The bank, which extended loans of around US$16.11 billion in January, added that it would increase lending in a reasonable and balanced manner for the rest of the year. Bank of China has already clamped down on the property sector by halving the discount rate on mortgages, while lenders across the nation have been ordered to rein in credit growth. The Wall Street Journal reported Monday that China Construction Bank (CCB) has set an annual lending quota of US$109.8 billion, about 20% less than last year. In a bid to restrict frontloaded lending – a common occurrence in China – CCB wants new loans extended in the first and second quarters to each account for no more than 30% of the full-year quota.