The decline in house prices is first and foremost the loss of buyers. Generally speaking, it is difficult for house prices to fall to the point where selling houses is not enough to repay loans. So banks are usually not afraid of this.

However, once it really happens, the subprime mortgage crisis in the United States will turn into a serious financial event like in 2007, and finally shake the global economy. So all countries are trying to avoid such a thing from happening again.

Banks in China are closely related to the government. The government is afraid of falling house prices, mainly because it is worried that falling house prices will cause social panic, which will lead to social unrest and even intensify social contradictions. In China, the government's ability to control housing prices is still very strong, and there will be no decline in housing prices. In the end, through the way of rising prices, other commodity prices will rise, while house prices will not rise or rise less, so as to tide over the difficulties.

Banks are worried that the real reason for falling house prices is not that ordinary people do not repay their loans, but that ordinary people do not buy houses, thus causing losses to real estate developers. Most of these developers rely on bank loans to build houses. Once they lose money or even go bankrupt, banks will lose a lot if they really don't pay back the money.