"The result of the stress test on property loans assures us that even in the worst scenario (say that housing prices plummet by 30 to 50 percent), bad loans would still remain within our sustainable limit. It is not true that the banking industry has been hijacked by the real estate sector," said Liu Mingkang, chairman of the China Banking Regulatory Commission, in a CCTV interview. He revealed that China's commercial banks had lifted their average capital adequacy ratio to 12.2 percent by the end of 2010, better shielding themselves from credit risks. And their provision for loan losses, now standing at RMB 1.3 trillion, is good enough to withstand short- and medium-term challenges incurred by a potential fall in housing prices as the result of recent regulative policies. Mr. Liu believes that seen from a long-term perspective, this calculated reinforcement of the housing market is a boon to the banking industry. Figures from the National Bureau of Statistics show that the share of bank loans in real estate investment had declined to 30 percent in the first half of this year.