The CBRC Tightened Platform Lending &Nbsp Again, And Prevented Borrowing From Affordable Housing.

At the same time, the CBRC pays great attention to the phenomenon of illegal and fraudulent practices arising from the rectification of platform loans for corporate loans, requiring banks to re examine them one by one before the end of June, and to "beat back" the statistics and management of platform loans.

This is the second time since the Spring Festival this year, the CBRC has tightened its lending platform.

As in last time, the CBRC will open the door to affordable housing, allowing only platform loans to be available in affordable housing (public rental housing).

In view of this, local governments have launched the idea of affordable housing. In Kunming, Qingdao and other places, a number of affordable housing financing platform has been built up with "speed".

Henan, Hubei, Shaanxi and other places of affordable housing financing platform is also in the construction of tension.

The possibility of all kinds of loans taken by the insured housing for land development and infrastructure projects will also arise.

Whether the affordable housing financing platform will become a local government ATM after all kinds of city investment companies is a cause for concern.

In this regard, the CBRC has also been vigilant and tried to counter it.

People close to the CBRC told this newspaper that the CBRC is working on the guidelines for housing loan protection. "Trying to get a large amount of loans through the affordable housing financing platform for the development of land at the first level and the construction of urban infrastructure will soon be blocked."

Head office of approval authority

"As early as last June, we did not have the right to approve the platform loan."

In April 7th, the governor of the western provincial capital city branch told reporters that according to his understanding, most of the joint-stock banks have already received the approval authority of platform loans. However, there are still a few provincial branches such as ICBC and other large branches of banks that still have some approval rights for platform loans.

To this end, the CBRC recently issued the circular that all banks should "unify the examination and approval authority of the platform loan to the head office". The head office of the bank shall carry out unified credit, full caliber monitoring and approval by the head office for the loans included in the list of platform customers, and implement the credit management and accountability mechanism at the head office level. The branches only undertake the front marketing and post loan management.

The CBRC also requires all banks to carry out the "list system" management of platform loans and customers who have already been rectified for company loans.

The "list" information management system includes at least three basic financing platforms, namely, corporate legal person, enterprise legal person and organ and legal person, and the elements such as credit, term structure of loan, investment orientation, risk identification and repayment source structure.

"The purpose of this is to curb the impulse to branch loans."

A local banking regulatory authority said that the banks' attitude towards platform lending is more prudent, but branches have performance pressure, and easy to form interest communities with local governments. They often try their best to help local governments obtain loans.

The general manager of the risk department of a stock holding company also believes that the head office's centralized examination and approval on the basis of the "list system" will enhance the qualification threshold for the financing platform to apply for loans.

"For example, we do not consider the financing platform below the municipal level, and the financing platform of the provincial government must strictly inspect the cash flow situation.

"In principle, no platform loan will be issued."

Before the end of June, the company violating the policy of "returning" platform loans

In addition, in order to frighten banks not to help local governments to make platform lending and illegal rectification for company loans, the notice issued a warning: for those companies that have been rectified for general corporate and commercial operations, they will only be held accountable if the risks arise.

For those who are undesirable due to force majeure factors, the principle of "who signs who is responsible" shall be seriously investigated and the responsibility of the president of the loan bank (the signatory of the three party signing the loan party) and the responsible person concerned shall be seriously investigated.

The CBRC also requested that banks should reexamine and verify whether the loan was restructured as a general corporate class and operated according to the principle of commercialization before the notice was issued. The banks should re examine whether it is a company legal person and satisfy the relevant withdrawal conditions. If the loan is not required but has been included in the general corporate loan, banks should reclassify it into platform loan management and will be completed by the end of 6 in 2011.

The condition that the CBRC has previously revised the platform loan rectification to the company loan is "three conforms": it is in line with the principle of "full coverage", that is, all the creditor banks have qualitative coverage of the risks of the borrowers, which is consistent with the principle of "qualitative agreement", that is, all creditor banks agree to make rectification for general corporate loans, and comply with the "three party signature" principle, that is, all creditor banks have reached agreement on the platform risk qualitative and corrective measures with the financing platform and the relevant departments of the local government, and have confirmed by the three party's signature.

In order to supervise the implementation of the notice, the CBRC also deployed the four round of on-site inspections throughout the year, focusing on the selection of major industries such as highways, docks and airports.

Protect the secret behind the housing fever

In the CBRC cage, the limited space for platform lending this year has been strictly delineated in the affordable housing sector.

After the Spring Festival this year, the CBRC issued the notice on further promoting reform and development and strengthening risk prevention, making it clear that only platform loans can be appropriately added in the areas of affordable housing construction (public rental housing, low rent housing and shanty towns).

In the clean-up of financing platform in 2010, affordable housing financing platform was also preserved everywhere.

As a result, under the climate of tighter lending and even locking up of platform loans, affordable housing has become a very few local governments' access to new credit.

To this end, more than two months after the holiday, the financing platform for affordable housing has sprung up everywhere.

In March, Kunming Development Investment Group Co., Ltd. jointly established Kunming Kunming public rental housing development Co., Ltd. as a unified construction and operation main body of public housing, low rent housing, resettlement housing and other affordable housing in Kunming.

In March 14th, the investment and financing platform for the construction of affordable housing in Qingdao, Qingdao public housing construction investment center, was put into operation.

The function of the center is to "integrate funds from various channels, finance the financial institutions, and co-ordinate the land acquisition, demolition and construction of affordable housing projects".

More affordable housing financing platforms are being constructed.

For example, Shaanxi's largest state-owned enterprise extended Petroleum (Group) Limited company has announced that it will jointly establish the Shaanxi affordable housing construction engineering Co., Ltd. with the Shaanxi provincial finance department, and is solely responsible for the fund-raising, allocation, withdrawal and engineering quality supervision and management of all affordable housing projects in Shaanxi province.

Some of the earlier secured housing financing platforms have already received large loans.

This is followed by the various means of obtaining loans by means of the insured housing.

"The original local financing platform to obtain loans from the bank has been extremely difficult. On the one hand, the establishment of public rental housing financing platform is to build public rental housing, on the other hand, in order to get some loans to the first level of land development."

A bank in Southwest China told the newspaper in April 11th that the train of thought in the city is the construction of public rental housing and the primary development of land.

"Equivalent to the name of affordable housing, get loans from banks for land reserves."

"Governments around the country have made so many affordable housing financing platforms. They should be vigilant. The purpose is not just to build affordable housing, but also to get a loan from another bank."

The local banking regulatory bureau is worried that if the control is not good, the effect of local financing platform clearance will be greatly reduced.

In 2010, the banking regulatory bureau, who was in charge of the local financing platform "unpack and restore", discovered the phenomenon of "mutual debt" between local financing platforms, that is, obtaining loans through a platform with strong financing ability, and then pferring funds to another platform that needed money by means of fictitious paction contracts.

"According to the three methods, loans must be earmarked for special purpose, and banks are entrusted to pay. However, through fictitious paction contracts, there is a certain degree of concealment in accounting behavior."

The former CBRC sources said.

In the view of this person, at present, a large number of infrastructure projects need to be injected into the follow-up funds, while the guarantee housing financing platform has become the only loan access channel, the local government has enough power to divert loans in the name of affordable housing to other areas.

It is reported that the CBRC has also been vigilant.

People close to the CBRC revealed that the CBRC is formulating a credit guideline for affordable housing.

The credit guideline provides for the entry requirements, mortgage guarantee measures, loan issuance procedures, etc.

"Last year, we were busy cleaning up loans from various local financing platforms. It took only a year to work hard. How can we make platform loans for a new look?"

This person said that the CBRC will certainly investigate and punish the behavior of the housing financing platform embezzling loans for other purposes.