Local banks told to put brakes on mortgages

SHANGHAI: The city's banks have been told to exercise caution on mortgage lending to help combat speculation and stabilize property prices.

Shanghai's banking regulator said on Sunday all local banks must abide by strict mortgage lending policies and spot checks will be conducted.

The statement is a response to recent media reports that domestic banks were lowering lending standards to second-home buyers to boost mortgages, which bring a large share of bank profits.