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Heavy! Central Bank and China Banking Regulatory Commission join hands to rectify: new rules for cash loans

Time: 2018-05-11         Source: First Finance         Author: First Financial

On December 1, the Office of the Leading Group for the Special Remediation of Internet Financial Risks and P2P Network Loan Risks was officially issued the “Notice on Standardizing the Reorganization of “Cash Loan” Business” (hereinafter referred to as “Notice”), clearly coordinating supervision and carrying out Network microfinance cleanup and rectification work.

The "Notice" stated that the supervision department of the microfinance company suspended the newly approved network (Internet) microfinance company; suspended the new microfinance company to carry out microfinance business across provinces (autonomous regions and municipalities). If the preparation has been approved, the approval of the opening of the business will be suspended. The approval department of the microfinance company shall comply with the relevant documents of the State Council. For approved institutions that do not comply with the relevant regulations, it is necessary to re-verify the business qualifications.

The "Notice" also stated that it suspends the issuance of small-scale loans on the network that are not supported by specific scenarios and has no designated use, and gradually compresses the stock business and completes the rectification within a time limit. No organization or individual may operate a lending business without obtaining the qualifications for operating lending business in accordance with the law.

Recently, the “cash loan” business with no scene support, no designated use, no customer group restriction, no mortgage, etc. has developed rapidly, and has played a certain role in meeting the normal consumer credit demand of some groups, but excessive borrowing, repeated credit, Problems such as improper collection, abnormally high interest rates, and infringement of personal privacy are prominent, and there are large financial risks and social risks.

The full text of the notice is attached:

Notice on standardizing the reorganization of "cash loan" business

The Office of the Leading Group for the Special Remediation of Internet Financial Risks in All Provinces (Autonomous Regions and Municipalities), and the Joint Work Office for Network Lending Risk Special Rehabilitation:

Recently, the “cash loan” business with no scene support, no designated use, no customer group restriction, no mortgage, etc. has developed rapidly, and has played a certain role in meeting the normal consumer credit demand of some groups, but excessive borrowing, repeated credit, Problems such as improper collection, abnormally high interest rates, and infringement of personal privacy are prominent, and there are large financial risks and social risks.

In order to implement the spirit of the National Financial Work Conference, in accordance with the Law of the People's Republic of China on Banking Supervision and Administration, the Law of the People's Republic of China on Commercial Banks, the Measures for the Banning of Illegal Financial Institutions and Illegal Financial Business Activities, and the Guiding Opinions on the Pilot Program of Small Loan Companies "Implementation Plan for Special Remediation of Internet Financial Risks", "Implementation Plan for Special Remediation of P2P Network Lending Risks", "Implementation Plan for Asset Management and Cross-border Specialization of Financial Business Risks Through the Internet", "Network Lending Information Intermediary Business Activity Management" Relevant laws, regulations and policy documents, such as the Interim Measures, are hereby notified as follows on the regulation and rectification of the "cash loan" business.

First, raise awareness and accurately grasp the principle of “cash loan” business development

(1) To establish financial institutions and engage in financial activities, they must accept access management according to law. No organization or individual may operate a lending business without obtaining the qualifications for operating lending business in accordance with the law.

(2) The comprehensive capital cost charged by the various institutions to the borrower in the form of interest rates and various fees shall comply with the provisions of the Supreme People's Court on the interest rate of private lending, and it is prohibited to issue or match loans that violate the relevant interest rate provisions of the law. The comprehensive capital cost charged by various institutions to the borrower shall be converted into an annualized form. All loan conditions and overdue processing information shall be fully and publicly disclosed beforehand, and the borrower shall be informed of the relevant risks.

(3) All types of institutions shall abide by the principle of “know your customer” and fully protect the interests of financial consumers. They shall not induce borrowers to borrow excessively in any way and fall into a debt trap. The borrower's credit status, solvency, and loan use should be fully and continuously evaluated, and the appropriateness of the borrower, the comprehensive capital cost, the loan amount ceiling, the loan term, the loan extension limit, the “cooling-off period” requirement, the loan use limit, and the loan use should be carefully determined. Mode and so on. Loans may not be issued to borrowers without income sources. The total burden of principal and interest debts of a single loan shall be clearly set to the maximum amount, and the number of loan extensions shall not exceed 2 times.

(4) All types of institutions should adhere to the principle of prudent operation, comprehensively consider the impact of missing credit records, long-term borrowing, fraud and other factors on the quality of loans, strengthen risk internal control, and carefully use the “data-driven” wind control model. Ways to hide bad assets.

(5) All types of institutions or third-party agencies may not collect loans through violence, intimidation, insult, embarrassment or harassment.

(6) All types of institutions shall strengthen the protection of customer information security, and shall not steal or abuse customer's private information under the name of “big data”, and may not illegally buy or sell or disclose customer information.

Second, coordinating supervision and carrying out the cleanup and rectification of the network microfinance loan

(1) The supervision department of the microfinance company suspends the newly approved network (Internet) microfinance company; suspends the new microfinance company to carry out microfinance business across provinces (autonomous regions and municipalities). If the preparation has been approved, the approval of the opening of the business will be suspended.

The approval department of the microfinance company shall comply with the relevant documents of the State Council. For approved institutions that do not comply with the relevant regulations, it is necessary to re-verify the business qualifications.

(2) Strictly regulate the management of network microfinance business. Suspend the issuance of network microfinance without specific scenarios and no designated use, gradually compress the stock business, and complete the rectification within a time limit. Effective measures should be taken to prevent borrowers from “funding loans” and “long-term borrowing”. It is forbidden to issue “campus loans” and “down payment loans”. It is forbidden to issue loans for speculative operations such as stocks and futures. Local financial regulatory authorities should establish continuous and effective regulatory arrangements, and the central financial regulatory authorities will strengthen supervision.

(3) Strengthening the prudent management of the funding sources of microfinance companies. It is prohibited to illegally raise funds or absorb public deposits in any way. It is forbidden to sell, transfer or disguise the transfer of credit assets of the Company through various internet platforms or local trading venues. It is forbidden to integrate funds through online lending information agencies. The funds incorporated in the name of credit asset transfer and asset securitization shall be combined with the on-balance sheet financing. The ratio of the combined total financing to the net capital shall be temporarily implemented according to the local current proportion. The localities shall not further relax or disguise the micro-loan in disguise. The proportion of the company's funds to be incorporated.

For over-provisioned microfinance companies, a scale plan should be established, and the relevant proportions should be met within the time limit, and supervised by the supervision department of the microfinance company.

The network microfinance loan cleaning and rectification work is specifically responsible for the supervision departments of microfinance companies in various provinces (autonomous regions and municipalities). The central financial supervision department will formulate and issue an implementation plan for the special rectification of network microfinance risks, and further refine the relevant work requirements.

Third, increase efforts to further regulate the participation of banking financial institutions in the "cash loan" business

(1) Banking financial institutions (including banks, trust companies, consumer finance companies, etc.) shall strictly follow the relevant regulatory and risk management requirements such as the Interim Measures for the Administration of Personal Loans and regulate loan disbursement activities.

(2) Banking financial institutions shall not provide loans in any form for institutions that do not have the qualifications for lending business, and shall not jointly contribute loans with institutions that do not have the qualifications for lending business.

(3) If a banking financial institution cooperates with a third-party institution to carry out a loan business, it shall not outsource core business such as credit review and risk control. The “help loan” business should return to the original source, and the banking financial institutions shall not accept third-party institutions without guarantee qualifications to provide credit enhancement services and confession-guarantee services such as end-of-life commitments, and require and guarantee that third-party cooperative institutions may not charge interest to borrowers. .

(4) Banking financial institutions and their asset management products issued or managed shall not directly invest or disguise their investment in (s) securitization products based on “cash loans”, “campus loans” or “down payment loans” or other products.

Banking financial institutions participate in the standardization and rectification of the "cash loan" business, which is carried out by the local agencies of the CBRC, and the local rectification offices cooperate.

Fourth, continue to advance, improve the business management of P2P network lending information intermediary agencies

(1) It is not allowed to combine or disguise the lending business that does not comply with the relevant interest rate provisions of the law; it is forbidden to deduct interest, handling fees, management fees, security deposits, and set high overdue interest, late fees, penalty interest, etc. from the borrowing principal.

(2) The core work of customer's information collection, screening, credit evaluation, and account opening shall not be outsourced.

(3) It is not allowed to participate in the P2P network lending by the funds of the banking financial institutions.

(4) It is not allowed to provide lending and matching business for students who are in school, who have no repayment source or who do not have the ability to repay. It is not allowed to provide “finance payment”, real estate over-the-counter allocation and other purchase financing and loan matching services. No loan-to-detail business that is not intended for use.

The joint work office for network loan risk special rectification should cooperate with the “Notice on Carrying out the “Cash Loan” Business Activity Clearing and Rectifying Work” (Web Loan Remediation Letter [2017] No. 19) to carry out “cash loan” for online lending information agencies. "The business is cleaned up and rectified.

5. Dispose of the classification and increase the disposal of various illegal and illegal institutions

(1) If all kinds of institutions carry out business in violation of the above-mentioned provisions, the supervisory departments shall, in accordance with the seriousness of the circumstances, adopt measures such as suspending business, ordering corrections, reporting criticism, not filing, canceling business qualifications, etc., and urging them to rectify, and the circumstances are serious and resolutely banned; At the same time, administrative punishments shall be implemented according to law by relevant functional departments of the provincial people's government and financial supervision departments. The relevant departments shall stop and investigate the responsibility for the websites and platforms that assist various institutions in conducting business in violation of laws and regulations.

(2) For organizations or individuals that have not approved the operation of lending business, under the guidance of the China Banking Regulatory Commission, all localities shall severely crack down and ban them according to law; for those who take the opportunity to escape the debts and do not support the work of cleaning up and rectifying, increase penalties and crackdowns; Anyone suspected of illegal business shall be transferred to relevant departments for investigation and punishment; financial institutions and non-bank payment institutions shall stop providing financial services, and the communication management department shall handle Internet financial websites and mobile applications in accordance with the law. Those suspected of illegal fund-raising, illegal securities and other illegal and illegal activities shall be investigated and dealt with according to the working mechanisms for handling illegal fund-raising, cracking down on illegal securities activities, and rectifying and rectifying various trading venues.

(3) Institutions that are suspected of malicious fraud and violent collection and other serious violations of laws and regulations shall promptly hand over the clues to the public security organs to effectively prevent risks and ensure the stability of the overall situation of the society.

6. Do a good job of implementation, pay attention to long-term effectiveness, and ensure the standardization and rectification effect

(1) All localities should strengthen organizational leadership and overall coordination, and the local financial supervision department should take the lead, clarify the main responsible departments for rectification of various institutions, find out the risk base, formulate the rectification plan, and compact the main responsibility of the institutions within the jurisdiction, and carry out comprehensive and in-depth development. Clean up and rectify, and work hard to establish a working mechanism that combines territorial responsibility with cross-regional synergy. At the same time, make emergency plans and hold the bottom line of risk.

(2) All localities shall guide relevant institutions within their jurisdictions to make full use of the national financial credit information basic database and the China Internet Finance Association credit information sharing platform to prevent borrowers from borrowing excessively and over-borrowing. All localities should guide the borrowers to fulfill their debt settlement obligations in accordance with the law, establish a system of disclosure of untrustworthy information, joint punishment, etc., so that the untrustworthy person is untrustworthy and limited.

(3) All localities should carry out risk warning education to improve the ability of the public to identify unfair, fraudulent loan activities and illegal and illegal financial activities, and enhance the awareness of risk prevention.

(4) All localities should establish a system of reporting and heavy rewards, make full use of the channels of the China Internet Finance Association's reporting platform, and reward those who provide clues to illegal activities, give full play to the role of social supervision, and impose heavy penalties on violations. Form an effective shock.

(5) All localities shall carry out standardization and rectification in strict accordance with the requirements of this Notice. The lack of regulatory responsibility and weak implementation will be seriously accountable.

(6) All localities shall submit the remediation plan and monthly work progress (within 5 working days after the month) to the P2P Network Loan Risk Special Remediation Working Group Office (CBRC), and copy the Internet Financial Risk Special Remediation Leading Group Office (PBOC) ).

Internet financial risk special rectification P2P online loan risk special rectification

Work Leading Group Office Work Leading Group Office

(People's Bank Financial Market Division Daizhang) (CBRC Pratt & Whitney Finance Department)

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