24 Oct 2016
CBRC Tackles Online P2P Lending Risks
The online lending sector in China has in recent years been faced with a series of risk-related incidents which have seriously harmed the lawful rights of investors, tarnished the reputation and hampered the sound development of the internet finance industry. In view of this, 15 ministries led by the China Banking Regulatory Commission (CBRC) have jointly released an implementation plan aimed at rectifying the online lending sector. The other ministries include the Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Industry and Commerce and State Internet Information Office.
The Party Central Committee and the State Council of China have announced decisions and plans to promote the orderly development of the online lending sector. To effectively execute such decisions and plans across the country, the latest implementation plan aims at rectifying the risks of online peer-to-peer (P2P) lending. The plan was drafted in accordance with two directives released earlier, namely the Guiding Opinions on Promoting the Healthy Development of Internet Finance and the Implementation Plan on Rectifying Internet Finance Risks.
The latest efforts to rectify internet finance risks are expected to be completed by the end of January next year. Through such efforts, the authorities hope to stop the spread of such risks, keep the industry on the right track, as well as to protect and encourage online lending institutions to pursue innovative development in a law-abiding manner.
For details of the latest implementation plan (Chinese only), please see:
For details of the Guiding Opinions on Promoting the Healthy Development of Internet Finance (Chinese only), please see:
For details of the Implementation Plan on Rectifying Internet Finance Risks (Chinese only), please see: http://www.cbrc.gov.cn/chinese/home/docView/1725BD97B8B44883B17A70EA319D98BE.html