China’s leading banks have increased their assessments of smaller lenders to reduce credit risk amid the country’s growing property debt crisis.

Two of China’s largest state-owned banks and a prominent joint-stock bank have lowered interbank lending limitations and shorten maturity periods for high-risk smaller competitors.

This move is in response to concerns about the viability of smaller banks in the second-biggest economy, as they are perceived as the weakest link in the financial system due to the worsening property sector crisis and soaring local government debt.

Large banks’ cautious approach may worsen their capital problems, potentially compeling Beijing to intervene and take more supportive action.