Norman Chan Tak-lam, new chief executive of the HKMA, "invited some banks to hear their views on the current state of the financial market, including the property and mortgage markets," a spokesman confirmed.

Those invited were Hongkong and Shanghai Banking Corp executive director Peter Wong Tung-shun, Bank of China (Hong Kong) (2388) vice chairman He Guangbei, Hang Seng Bank (0011) chief executive Margaret Leung Ko May-yee, Standard Chartered Bank (Hong Kong) chief executive Benjamin Hung Pi-cheng and Bank of East Asia (0023) deputy chief executive Adrian Li Man-kiu.

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Though luxury property prices are reaching record highs, most buyers are paying in cash, a banking source said.

Tightening lending requirements or raising mortgage rates would therefore be of little help in cooling down the red-hot luxury residential market, the source said.

The five banks at yesterday's meeting accounted for 59.1 percent of business in the mortgage market in September, according to data from mortgage brokerage mReferral, with BOCHK taking the lead at 20.6 percent.

Sources also said the bankers placed great emphasis on government land supply.

Chief Executive Donald Tsang Yam- kuen said in his policy address last week that the government will fine-tune its land supply arrangements when necessary.

Hang Lung Properties (0101) chairman Ronnie Chan Chi-chung said he is not worried about banks loosening or tightening mortgage lending requirements.

"Large banks such as HSBC, Hang Seng Bank, Standard Chartered Bank and BOCHK are very responsible toward Hong Kong people," Chan said. "The problem with Hong Kong's property market does not come from mortgage lending."

He acknowledged that land shortage is one of the reasons behind rising prices.

Hong Kong Mortgage Corp, in cooperation with 10 lenders, will offer low fixed mortgage rates of between 1.28 percent and 3.88 percent for tenors of up to 10 years.