The General Office of the Insurance Regulatory Commission of the Bank of China, the General Office of the Ministry of Housing and Urban-Rural Development and the General Office of the People's Bank of China recently jointly issued the Notice on Preventing Operating Loans from Illegal Flowing into the Real Estate Sector. The notice pointed out that a special investigation on the illegal inflow of business loans into real estate will be jointly carried out, and the investigation will be completed before May 20021and 20021,and the rectification and punishment of violations will be intensified. Establish a "blacklist" of violations by real estate intermediaries and personnel, increase accountability and punishment, and disclose them regularly.

The Notice requires that banking financial institutions should effectively strengthen the "three checks" on operating loans, implement various requirements for credit approval, and may not issue operating loans to shell enterprises without actual operations. For borrowers whose enterprise has been established for less than 1 year, or who have held mortgaged property for less than 1 year, it is necessary to further strengthen the qualification examination of borrowers, cross-check all kinds of information such as industrial and commercial registration, enterprise operation and tax payment, and do not substitute enterprise certification materials for substantive examination.

At the same time, the Notice requires banking financial institutions to strengthen the review of credit demand, conduct a penetrating and substantive review of loan demand for business purposes, and not relax the review of real loan demand because of sufficient mortgage, and not issue business loans to enterprises whose capital flow obviously does not match the business situation. It is necessary to reasonably determine the loan term according to the actual needs of borrowers, and further strengthen the internal management of loans for business purposes with a term of more than 3 years to ensure that the funds are really used for business operations.