China News Service, Beijing, February 20 (Reporter Wang Enbo) The China Banking and Insurance Regulatory Commission announced on the 20th the "Notice on Further Regulating the Internet Loan Business of Commercial Banks", which proposed three quantitative indicators for this type of business, including the common The proportion of capital contribution to grant loans is clearly required.
The China Banking and Insurance Regulatory Commission promulgated and implemented the "Interim Measures for the Administration of Internet Loans of Commercial Banks" in July 2020, but the regulatory authorities have found that the implementation effects and rectification efforts of various institutions are different, especially in the independent implementation of core risk control links and strengthening the management of cooperative institutions. , The Internet loan business behavior of some institutions still has a certain gap with the requirements of the Measures, and there are hidden risks.
According to reports, in response to the actual problems encountered in the implementation of the "Measures", the "Notice" further refines the prudential supervision requirements and unifies the supervision standards.
For example, in terms of implementing risk control, commercial banks are required to strengthen the main responsibility of risk control, independently carry out Internet loan risk management, independently complete risk control links that have an important impact on loan risk assessment and risk control, and prohibit outsourcing of key links.
The "Notice" clarified three quantitative indicators, including the ratio of capital contribution, that is, the commercial bank and the partner institution jointly contribute funds to grant loans, and the partner's capital contribution ratio in a single loan shall not be less than 30%; the concentration index, that is, the commercial bank and a single cooperation The loan balance of the bank issued by the Party shall not exceed 25% of the net Tier 1 capital; the limit indicator, that is, the balance of Internet loans issued jointly by commercial banks and all cooperative institutions shall not exceed 50% of the total loan balance.
Regarding the investment ratio indicator that has attracted much attention, the head of the relevant department of the China Banking and Insurance Regulatory Commission stated that the joint funding of commercial banks and cooperative institutions to extend loans is conducive to complementing each other's advantages and improving efficiency.
However, in practice, individual banks have weak credit risk management and mismatched rights, responsibilities and interests with partners, etc., which have damaged the foundation of the healthy and sustainable development of Internet lending business.
The person in charge said that the quantitative standards proposed this time are based on the actual situation of the current commercial banks' Internet loan business development, after full investigation and calculation, and also taking into account the consistency with previous relevant regulations to avoid regulatory arbitrage.
In addition, the "Notice" further clarified and strictly controlled the cross-regional operation of Internet loans, emphasizing that local corporate banks that carry out Internet loan business should serve local customers and must not carry out Internet loan business across registered jurisdictions.
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