In recent years, with the development of the market, the promotion of various consumer demand and the popularity of credit cards, the proportion of short-term consumer loans in household sector debt has been rising, from 7.3% in 2008 to 16.8% at the end of 2017.
However, the growth of the loan balance of the household sector has a higher correlation with the personal housing loan balance. Since 1997, when commercial banks started the personal housing mortgage loan business, the personal housing loan has been the main part of household sector debt. From 2008 to 2017, the balance of personal housing loans increased from 300 million yuan to 21.9 trillion yuan, accounting for 45% to 54% of the balance of household sector loans.
With the increase of household loan balance, the debt burden of our household sector is rising. At the end of 2008, Chinas household sector leverage ratio (debt balance/GDP) was 17.9%, reaching 49.0% by the end of 2017, rising by 31.1 percentage points in 10 years, with a rapid growth rate. In Shanghai (65.5%), Zhejiang (65.4%), Gansu (59.8%), Guangdong (59.1%), Beijing (58.8%), Fujian (57.5%), Chongqing (50.6%), Ningxia (49.3%) and Jiangxi (49.2%) the household sector debt burden (leverage rate) is higher than the national average.
However, from the overall level, the debt burden of household sector in China is lower than the international average level, and the non-performing rate of household sector loans has been at a low level. In 2017, the non-performing rate of personal loans was 1.5%, down 0.2 percentage points from the previous year, which was lower than the overall non-performing rate of bank loans by 0.35 percentage points.