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China’s central bank has ordered the nation’s lenders to strictly control new loans within the first quarter of year, people knowledgeable about the challenge said, in another move to curb excess leverage in the financial system.

The brand new guidance through the People’s Bank of China puts a particular increased exposure of 二胎, the individuals said, as authorities grapple to contain runaway property prices. And although the PBOC regularly seeks to help banks’ credit decisions, this time around it can possibly make errant lenders pay more for deposit insurance, one of the people said.

The central bank declined to comment. Policy makers are trying to strike an equilibrium between avoiding excess credit that fuels asset bubbles and keeping enough funding inside the financial system to meet the seasonal surge in demand for credit ahead of the start of the Lunar New Year holiday in the week. President Xi Jinping along with his top economic deputies reaffirmed last month which they decide to prioritize the control of financial risks within the economy in order to avoid asset bubbles.

“This is actually a continuation of the tightening trend we’ve seen because the second 50 % of this past year and extends from shadow banking to on-balance sheet loans,” said Wei Hou, a Hong Kong-based analyst at Sanford C. Bernstein & Co.

The PBOC could use its MPA framework to punish banks which don’t abide by the latest lending rules by lowering rates of interest on reserves they have to deposit with all the central bank, based on the people, who asked to not be known as the discussions are private. The central bank may also punish errant lenders simply by making them pay more for deposit insurance, one of the people said.

The newest instructions included a request banks to keep any surge in new mortgage lending within the first quarter beneath the increase found in your fourth quarter of a year ago, the individuals said. The increase rate of total outstanding mortgages should likewise not exceed your fourth quarter rate, they added.

Chinese banks doled out an archive 12.65 trillion yuan ($1.8 trillion) of brand new loans in 2016, with many tending to front-load their lending from the first quarter of year so that they could record the interest income earlier. From the total new loans, 36 percent received out in the 1st quarter of just last year.

In another manifestation of the effort to curb risks, the PBOC on Tuesday unexpectedly increased the rates of interest on medium-term loans that this uses to handle liquidity. Earlier, the central bank stated it would include wealth-management products held off bank balance sheets in its macro prudential assessment framework for gauging risk to dexqpky02 financial system starting within the first quarter.

The government has been targeting home loans considering that the fourth quarter to contain runaway property prices in areas deemed overheated.

At their annual economic work conference recently, Chinese leaders singled out property, praoclaiming that “houses are designed to become inhabited, not for speculation,” based on a post-meeting statement released from the official Xinhua News Agency. Apart from mortgage curbs, China’s government is encouraging city-specific measures like raising down-payment requirements.

As well as setting a limit on 房屋二胎, the central bank told banks to help keep other loans in order, the people said. Bank of Communications Co. estimates that China’s new loans may reach 13.5 trillion yuan in 2017, which would have been a new record.