Chinese Banking and Insurance Supervisory Commission Notice concerning Further Standardizing Commercial Banks’Internet Lending Operations

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YBJBF No. (2021)24

All banking supervisory bureaus, all large-scale banks, shareholding-type banks and foreign invested banks:

In order to promote commercial banks to effectively implement the “Provisional Rules for the Management of Commercial Banks’ Online Lending” (hereafter referred to as “Rules”), further standardize Internet lending operations and activities, stimulate the healthy development of the business, with the agreement of the CBIRC, the following notification is made on related matters:

I, Implementing risk control requirements. Commmercial banks shall strengthen their dominant responsibility in risk control, independently conduct Internet lending risk management, and autonomously complete lending risk assessment and risk control steps with an important influence for risk control, they are strictly prohibited from outsourcing crucial steps in management before, during and after loans.

II, Strengthening capital issue proportion management. Where commercial banks jointly issue capital for Internet loans with cooperating bodies, they shall strictly implement interregional capital issue proportion management requirements, the capital issue proportion from the cooperating party for a “single pen loan” [a loan not repayable in installments] may not be lower than 30%.

III, Strengthening management of concentration of cooperating party. Where commercial banks jointly issue capital for Internet loans with cooperating bodies, the balance of that bank’s lending issued with any one cooperating party may not exceed 25% of the net amount of that bank’s first-tier capital.

IV, Implementing aggregate control and quota management. The balance of Internet loans where commercial banks jointly issue capital with cooperating bodies may not exceed 50% of that bank’s total lending balance.

V, Strictly controlling cross-regional operations. Where banks with local legal personality conduct Internet lending activities, they shall serve local customers, they may not conduct Internet lending operations outside of the jurisdiction where they are registered. Those who do not have physical operational branches, who mainly conduct operations online, and furthermore conform to other CBIRC regulations and conditions are exempt.

VI, Article 2 and Article 5 of this Notification take effect from 1 January 2022, operational inventories will be settled naturally, the transition period for other provisions is consistent with the “Rules”. The CBIRC and its assigned bodies will, according to the principles of “one bank one policy, steady transition”, supervise commercial banks in formulating rectification plans for Internet lending operations that do not meet the requirements of this Notice, and in completing rectification within the notification period. Commercial banks meeting conditions are encouraged to meet targets early.

VII, The CBIRD and its assigned bodies may put forward stricter precautionary supervision and management requirements concerning capital issue proportions, concentration of cooperating bodies, Internet lending amounts and quotas on the basis of the operational management, risk levels and operational conduct status of commercial banks under their jurisdiction, and on the basis of the provisions of this Notice.

VIII, Foreign bank branches, trust companies, consumer finance companies or car finance companies conducting Internet lending operations will refer to and implement the requirements of this Notice and the “Rules”, where the CBIRC provides otherwise, those provisions are followed.

CBIRC General Office

19 February 2021













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