The steady increase caught the regulators' attention.
Moody's said measures to cool the property market have had an impact on the share of mortgage loans in headline bank lending, which edged down further in Q3 2017.
"However, short-term consumer loans have steadily increased, catching the attention of regulators. In September, the China Banking Regulatory Commission (CBRC) warned of risks from consumer loans and vowed to prevent the use of such short-term loans for home purchase," added Moody's.
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