Banks told to act more quickly on home loans

Commercial banks should set mortgage rates at "reasonable" levels and grant housing loans more quickly, especially for first-time buyers, the People's Bank of China said in an online statement on Tuesday.

During a meeting with executives from 15 commercial banks on Monday, the PBOC emphasized that the banks should improve their housing-finance services and give priority to loans for first-time homebuyers while keeping a closer eye on the associated risks.

"The central bank is aiming to maintain economic stability. The move signals that China is fine-tuning its macroeconomic policy rather than adopting strong stimulus policies," said Yin Zhongli, a financial researcher with the Institute of Finance and Banking at the Chinese Academy of Social Sciences.