Nanjing banks tighten mortgage loans

The cash squeeze in the interbank system is rippling out across the residential property market, as many commercial banks in Nanjing have called a stop to giving mortgage loans for properties that were occupied and have been put up for sale.

A number of Nanjing banks have suspended accepting mortgage loan applications for pre-owned apartments, the National Business Daily reported on Wednesday.

The application process for eligible first-time homebuyers has been extended to more than one month from one week, implying commercial banks are tightening credit, a realty expert said.