Shaanxi province probes banks for illegal lending to real estate

Shanghai

THE banking regulator of China's north-western province of Shaanxi has ordered inspections of local banks to better gauge financial risks from illegal lending to the real estate sector, two banking sources said on Friday.

The Shaanxi office of the China Banking Regulatory Commission (CBRC) is targeting six areas of irregularities, including illegal financing for land purchases and real estate development projects, and loans borrowed to fund mortgage downpayments, the sources said.