News Column

CCB to Shrink Realty Loans in 3rd, 4th-tier Cities

September 2, 2014

BEIJING, September 2, SinoCast -- China Construction Bank (CCB) will be more cautious on lending due to the impact from the external economic environment but will "use up" annual credit quota, said a person in charge.

In allusion to the deposit growth drop problem faced by commercial banks, CCB has begun to deploy response measures and the deposit-to-loan ratio is expected to improve in the second half of this year.

In the current environment, CCB is more likely to choose cooperation with state-owned real estate enterprises under the administration of SASAC, try to select real estate projects in first- and second-tier cities and shrink cooperation with projects in third- and fourth-tier cities.

Earlier rumors said CCB will launch the "5321" pay cut program to cut annual salary of leaders by 50%, department heads by 30%, section chief by 20% and employees by 10%.

CCB chairman Wang Hongzhang replied the pay cut is for persons in charge of SASAC companies rather than ordinary employees. CCB will implement the pay cut requirement after the specific program is issued, but now, the bank still does not know the pay cut proportion.

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Source: Sinocast Banking & Credit Beat (China)

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