China News Service, Beijing, February 19 (Reporter Wang Enbo) The State Administration of Financial Supervision of China issued the "Regulatory Rating Measures for Auto Finance Companies" on the 19th, proposing to strengthen classified supervision and restrict the development of high-risk businesses by auto finance companies with greater risks.
The above-mentioned rating methods regulate the regulatory rating work of auto finance companies in general, clarify the regulatory rating elements and methods, and set up six ratings including corporate governance, capital management, risk management, professional service capabilities, consumer rights protection and information technology management. Factors are given weights of 10%, 10%, 35%, 20%, 15% and 10% respectively, and the scoring principles are stipulated.
The regulatory rating of auto finance companies is carried out in accordance with the steps of initial assessment, re-assessment, review, and feedback of regulatory rating results. The regulatory rating results are divided into levels 1-5 and S-level from excellent to poor. The larger the value of the regulatory rating result, the greater the risk of the institution and the need to pay a higher degree of regulatory attention.
According to the person in charge of the relevant departments of the State Administration of Financial Supervision, the rating content reflects the characteristics of the industry, and the "professional service capability" rating element is specially designed to highlight the regulatory orientation of strengthening the professional capability building of auto finance companies and guide auto finance companies to adhere to the function of specializing in professional consumer credit. Focusing on serving the automobile industry and automobile consumption, we will improve professional financial service capabilities, enrich the supply of automobile consumer credit products, meet the diversified financial service needs of residents for car purchase and consumption, further release the potential of automobile consumption and expand domestic demand.
The person in charge also pointed out that in July 2023, the State Administration of Financial Supervision revised and issued the "Administrative Measures for Auto Finance Companies", which expanded the business scope of auto finance companies and added after-sales and leasebacks, auto add-on financing, auto after-sales service provider loans, etc. business. Comprehensively evaluate the complexity and potential risks of different businesses, and use different regulatory rating results as the prudential basis for the hierarchical and classified supervision of auto finance companies' businesses. For auto finance companies with greater risks, restrict the development of high-risk businesses, which will help effectively control external affairs. Business Risks. (over)