China's largest state-owned commercial bank, the Industrial and Commercial Bank of China (ICBC), has increased its housing loans since the start of this year, bank officials said on December 23.

Figures provided by the Bank show that by the end of November, housing deposits totaled 103.8 billion yuan, including 29.3 billion yuan in Public Housing Funds, while housing loans stood at 115.6 billion yuan, an increase of 32.7 billion yuan.

Bank officials said increasing real estate loans will not only improve the housing industry, but expand new business and improve the Bank assets.

By the end of November, housing development loans from the Bank were 57.7 billion yuan, a 10.2 billion yuan increase from the beginning of the year. In the same period, the Bank's individual housing lending increased by 20.6 billion yuan, reaching 36.2 billion yuan.

ICBC will continue to give priority to individual housing loans and the development of ordinary commodity houses next year. The Bank plans to spend 36 billion yuan on individual housing loans and 14 billion yuan on housing development.

The percentage of housing loans against the total loans of the Bank will increase annually by two percent in the next five years. The percentage of individual housing loans will be 1.5 percent. In five years, housing loans will account for 15 percent of the Bank' s total loans while individual housing loans will account for 10 percent.

By 2004, the Bank's loans in real estate is expected to reach 450 billion yuan, while total individual housing loans would be 300 billion, 10 times that of the current figure.

The Bank is also looking into the possibilities of new payment packages and new interest schemes for individual housing loans. In addition, applying for housing loans will become more simplified in the future. (Xinhua)