Subprime mortgage crisis? Not here

Banks protected by low home-loan ratio and high downpayments

BEIJING - Chinese banks will not run a great risk of bad loans should a property bubble burst because only a small part of bank lending went to homebuyers, said China's top banking regulator.

Liu Mingkang, chairman of the China Banking Regulatory Commission (CBRC), said on Monday that China's banking system won't run considerable risks on bad home loans because the mortgages are backed by sufficient downpayments and the total lending volume is limited.