The Hong Kong Monetary Authority on Friday demanded banks to toughen mortgage lending in order to limit the rising risk to Hong Kong property market from the U.S. Federal Reserve's aggressive stimulus programme.
The maximum term of new home mortgages is limited to 30 years from 40 years, HKMA chief executive Norman Chan said. Also, central bank chief ordered banks to tighten rules for second time property buyers.
Chan told reporters earlier on the day that the launch of QE3 and improvement in Eurozone debt crisis will increase risk of overheating in asset market. And the bank will introduce counter cyclical measures when appropriate.
by RTT Staff Writer
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