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Heavy! Central Bank, China Banking Regulatory Commission jointly rectified: new regulations for cash loans to the floor

Time: 2017-12-01         Source: First Financial         Author: First Financial

On December 1, the Office of Leading Group for Special Remediation on P2P Internet Loans formally issued the "Circular on Regulating the Business of Cash Loans" (the "Circular") to regulate and rectify the business of " Network microfinance clean-up work.

According to the "Notice", the regulatory authorities of the small loan companies suspended the newly approved network (Internet) microloan companies; and suspended the newly approved small loan companies to carry out the microfinance business across provinces (autonomous regions and municipalities). Has approved the preparatory establishment, suspension of approval of the opening. The establishment of the microfinance company shall comply with the relevant documents of the State Council. For those who do not meet the relevant provisions of the institutions have to re-verify the business qualifications.

The circular also said that it will suspend the issuance of network-based microfinance relying on no specific scenarios and no designated purpose and gradually reduce the stock business and complete the rectification within a time limit. Failing to obtain the qualifications for operating lending business according to law, no organization or individual may operate the lending business.

Recently, the rapid development of the "cash loan" business with characteristics of no scene backing, no designated use, no customer group restriction and no mortgage has played a certain role in meeting the demand of some groups for normal consumer credit. However, excessive borrowing, repeated credit granting, The problems of improper collection, abnormally high interest rates and infringement of personal privacy are prominent, with large financial risks and hidden dangers in society.

Attached to the attached notice:

Circular on Regulating "Cash Loans" Business

All provinces (autonomous regions and municipalities) Internet financial risk special rectification work leading group office, Internet loan risk special rectification Joint Office of work:

Recently, the rapid development of the "cash loan" business with characteristics of no scene backing, no designated use, no customer group restriction and no mortgage has played a certain role in meeting the demand of some groups for normal consumer credit. However, excessive borrowing, repeated credit granting, The problems of improper collection, abnormally high interest rates and infringement of personal privacy are prominent, with large financial risks and hidden dangers in society.

In order to implement the spirit of the National Financial Work Conference and in accordance with the "Law of the People's Republic of China on Banking Supervision," "Law of the People's Republic of China on Commercial Banks," "Illegal Financial Institutions and Measures to Ban Illegal Financial Activities", Guiding Opinions on Piloting Microcredit Companies Implementation Plan for Special Remediation Work on Internet Financial Risks, Implementation Plan for Special Remediation Work on P2P Internet Loans and Risks, Plan for Implementing Special Remediation Work on Asset Risk Management and Cross-border Financial Business via Internet, Operation Management for Internet Loan Information Intermediaries Interim Measures "and other relevant laws and regulations and policy documents, is now regulating the rectification" Cash Loan "business matters related to the notification below.

First, raise awareness and accurately grasp the principle of "cash loan" business

(1) To set up financial institutions and engage in financial activities, they must accept access management in accordance with the law. Failing to obtain the qualifications for operating lending business according to law, no organization or individual may operate the lending business.

(2) The comprehensive cost of funds collected by the borrower from interest rates and various forms of fees by various institutions shall comply with the stipulations of the Supreme People's Court on the interest rates of non-governmental loans and prohibit the granting or matching of loans in violation of the provisions of the relevant interest rates of the law. All kinds of agencies charge the borrower comprehensive financial costs should be converted into an annualized form of uniform, various loan conditions and overdue information should be comprehensive and public disclosure in advance, to the borrower to prompt the relevant risks.

(III) Various agencies should abide by the principle of "knowing your customers" and fully protect the rights and interests of financial consumers. They must not in any way cause the borrowers to over-borrow and fall into the debt trap. The creditworthiness, solvency and loan purpose of the borrowers should be fully and continuously assessed. Careful determination of appropriateness of borrowers, comprehensive cost of funds, ceiling of loan amount, term of loan, limit of extension of loan, requirement of "cooling-off period", limit of loan application, Models and so on. No loans shall be made to borrowers without income sources. The total debt and interest expenses of a single loan shall be clearly set an upper limit on the amount of loans, and the number of loans normally extended shall not exceed 2 times.

(4) All types of institutions should adhere to the principle of prudent operation, fully consider the possible impact of lack of credit records, long-term loans and fraud on the quality of loans, strengthen internal control over risks and use "data-driven" risk control models with caution Ways to conceal non-performing assets.

(5) No agency of any kind or a third party agency entrusts to collect loans through such means as violence, intimidation, insult, slander or harassment.

(6) All kinds of agencies shall strengthen the protection and safety of their clients' information, and may not steal information in the name of "big data", abuse their privacy information, and illegally trade or disclose customer information.

Second, co-ordinate the supervision and carry out clean-up and rectification of the network of micro-loans

(1) The regulatory authorities of small loan companies suspended the newly approved network (Internet) micro-loan companies; and suspended the newly approved small loan companies to carry out micro-loan businesses across provinces (autonomous regions and municipalities). Has approved the preparatory establishment, suspension of approval of the opening.

The establishment of the microfinance company shall comply with the relevant documents of the State Council. For those who do not meet the relevant provisions of the institutions have to re-verify the business qualifications.

(II) Strictly regulate the management of network micro-loan business. Suspend the distribution of non-specific scenarios rely on, no designated use of network micro-loans, and gradually reduce the inventory business, deadline to complete the rectification. Effective measures should be taken to prevent borrowers from "borrowing and lending" and "borrowing more". Prohibit the issuance of "campus loans" and "down payment loans." Prohibition of loans for stocks, futures and other speculative operations. Local financial regulatory authorities should establish continuous and effective regulatory arrangements and the central financial regulatory authorities will step up supervision.

(C) to strengthen the prudential management of microfinance company sources of funds. It is forbidden to illegally raise money or absorb public deposits in any way. It is forbidden to sell, transfer and disguise the credit assets of the Company through internet platforms or local trading venues. It is forbidden to integrate funds through online lending and information intermediaries. Funds transferred in the name of credit asset transfer and asset securitization shall be calculated on the basis of the financing in the table. The ratio of the total amount of financing and the net capital after the merger shall be temporarily implemented in accordance with the local current ratio, and no further easing or disguised relaxation of microfinance The proportion of funds incorporated into the company.

For the micro-loan companies that exceed the provisions of the proportion, they should formulate plans for reducing the scale and reach the relevant proportion within the required time limit, supervised and implemented by the supervision departments of the micro-loan companies.

The work of clearing up and rectifying the network microfinance loans shall be under the specific responsibility of the supervisory departments of microfinance companies in all provinces (autonomous regions and municipalities). The Central Financial Regulatory Department will formulate and issue an implementation plan for the special rectification of the network micro-loan risks to further refine the relevant work requirements.

Third, step up efforts to further standardize the banking financial institutions to participate in the "cash loan" business

(I) Banking financial institutions (including banks, trust companies, consumer finance companies, etc.) shall, in strict compliance with the relevant regulatory and risk management requirements of the Interim Measures for the Administration of Personal Loans, regulate the loan disbursement activities.

(2) The banking financial institution shall not provide loans for any organization that does not qualify for lending business in any form and shall not make loans jointly with the institutions that do not qualify for the lending business.

(3) Where a banking financial institution cooperates with a third-party institution to carry out loan business, it may not outsource the core businesses of credit examination and risk control. "Aid loans" business should return to its origin, and banking financial institutions may not accept unsecured third-party agencies to provide credit enhancement services and other unaffordable credit enhancement services. Upon request and guarantee, third-party cooperative institutions shall not charge interest fees to borrowers .

(4) The banking financial institutions and the asset management products they issue or manage shall not directly invest or disguise investment in the (class) securitized products on the basis of "cash loans", "campus loans" and "down payment loans", or other products.

Banking financial institutions to participate in the "cash loan" business norms rectification work, by the CBRC local agencies responsible for carrying out all over the country to do with the remediation.

Fourth, continue to promote and improve the P2P network lending information agency business management

(1) It is forbidden to match or disguise the loan business which does not accord with the interest rate stipulated by law; Prohibit the deduction of interest, handling fee, management fee, deposit and set high overdue interest, late fee and penalty interest from the loan principal.

(B) shall not outsource the core work of customer information collection, screening screening, credit rating, account opening.

(C) may not match the banking financial institutions to participate in P2P network lending.

(4) No loan matching business shall be provided to borrowers who are students in school, have no source of repayment, or do not have the repayment ability. Shall not provide "down payment loans", real estate off-site with capital and other home financing financing brokerage services. No non-designated loan matching business shall be provided.

The joint work office for the special rectification of online loan risks should, in conjunction with the Circular on Finishing Cleanup and Reorganization of "Cash Loans" Business Activities (No.2017 [2017] of the Network Loans Remedies), launch a "cash loan "Business to clean up and rectify.

Fifth, classification, increase the intensity of various types of illegal institutions to deal with

(1) Where various agencies conduct business in violation of the aforesaid provisions, supervisory departments shall, according to the severity of the case, suspend the business, order correction, notify criticism, refrain from filing the case, cancel the qualification of the business, and supervise the rectification, and resolutely ban the case; At the same time, the relevant functional departments of the provincial people's government and financial regulatory authorities, as appropriate, implement the administrative punishment according to law. For websites and platforms that assist various agencies to carry out their business in violation of laws and regulations, relevant departments should stop and hold accountable according to law.

(2) For organizations or individuals that have not approved the operation of lending business, all localities, under the guidance of China Banking Regulatory Commission, severely crack down and ban according to law; for those who take the opportunity to evade debts, they will not cooperate to clean up and reorganize the work, so penalties and crackdowns will be intensified; Those suspected of illegal operation shall be transferred to relevant departments for investigation. Financial institutions and non-bank payment institutions shall stop providing financial services and the communications administration shall dispose of Internet financial websites and mobile applications according to law. Suspected illegal fund-raising, illegal securities and other illegal activities, respectively, according to the disposal of illegal fund-raising, combat illegal securities activities, clean up and rectification of various trading places and other working mechanisms to investigate and deal with.

(3) Organizing serious violations of laws and regulations that are suspected of being malicious fraud and violence, promptly transferring clues to the public security organs, earnestly preventing risks and ensuring the overall social stability.

Six, do a good job of implementation, focus on long-term, to ensure the standardization of work results

1. All localities should strengthen their organizational leadership and overall coordination and coordination. Local financial regulators should take the lead in clarifying the main responsible departments for remediation of various agencies, find out the base of risks, formulate plans for reorganization, and delineate the main responsibilities of practitioners in their jurisdictions and conduct comprehensive and in-depth development We will rectify and rectify the situation and pay close attention to establishing a working mechanism combining territorial liability and cross-regional cooperation. At the same time, make contingency plans, keep the bottom line of risk.

(2) All localities should guide the relevant agencies in their jurisdictions to make full use of the database of national financial credit information and the credit information sharing platform of China Internet Finance Association to prevent lenders from borrowing long and over borrowing. All localities should guide their borrowers to fulfill their obligations of paying off debts in accordance with the law and establish systems such as open information and joint disciplinary measures so as to confuse those who have been dishonest and be limited everywhere.

(3) Risk warning education should be carried out in all localities to enhance people's ability to identify unfair and fraudulent lending activities and illegal and irregular financial activities, and to enhance their awareness of risk prevention.

(4) All localities should set up a system of reporting and recriminating heavy penalties, make full use of channels such as the reporting platform of China Internet Finance Association, reward referees who provide clues to illegal activities, give full play to the role of social supervision, and impose heavy penalties on illegal acts, Form an effective deterrent.

(E) All localities should strictly follow the requirements of this circular to carry out standardized rectification. The absence of regulatory responsibilities and ineffective implementation will be serious and accountable.

(6) All localities should submit the rectification plan and the progress of monthly work (within 5 working days after the month) to the Office of Special Working Team for P2P Internet Loans (CBRC) and copy to the Office of Leading Group for Internet Financial Risk Remediation (PBOC ).

Special rectification of Internet financial risks P2P network credit risk special rectification

Work Leading Group Office Leading Group Office

(People's Bank of China Financial Markets Division on behalf of chapter) (China Banking Regulatory Commission Pu Hui Department of Finance)

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