Core Viewpoint - Recent trends indicate that banks are increasing the entry barriers for asset appraisal service providers due to the inability of existing suppliers to meet business needs and the rising risks associated with inflated real estate valuations during a downturn in property prices [1][2][3] Group 1: Reasons for Increased Tendering - Several banks, including Guangning Rural Commercial Bank and Jinan Rural Commercial Bank, have publicly tendered for asset appraisal service providers, driven by the expiration of contracts with current suppliers and the need to enhance service management [1][2] - The rising property values used as collateral have exposed risks as housing prices decline, prompting banks to strengthen their asset appraisal services [1][3] Group 2: Increased Entry Barriers - Banks are not only inviting new bidders but also raising the entry requirements for asset appraisal service providers, including the necessity for a clean criminal record and no history of bribery [2][3] - Specific requirements include having a sound financial accounting system and no significant legal violations in the past three years, as seen in the tender announcements from various banks [2][3] Group 3: Regulatory Attention and Risk Management - Regulatory bodies have expressed concern over "high appraisal, high loan" practices, where inflated property valuations lead to excessive loan amounts, increasing financial risks [2][3] - Banks are enhancing risk management by tightening control over asset appraisal service providers, which serves as a primary defense against "high appraisal, high loan" risks [3][4] Group 4: Market Dynamics and Risk Exposure - The risk of "high appraisal, high loan" practices escalates during periods of declining asset prices, as inflated valuations can lead to significant loan defaults when borrowers face financial strain [4][5] - Experts suggest that banks should implement dynamic assessment systems and utilize technology to monitor and verify appraisal reports, thereby mitigating potential risks [4][5] Group 5: Current Practices in Asset Appraisal - Banks are enforcing strict entry requirements for asset appraisal suppliers and regularly rotating appraisal companies to ensure compliance and accuracy [5] - Systems are in place to alert banks when appraisal prices significantly exceed market values, enhancing oversight and risk management [5]