China to kick out unlicensed Internet micro-loan lenders

Updated 2017-11-24 11:33:13 CGTN

China's central bank and China Banking Regulatory Commission (CBRC) held a joint meeting on Thursday on the rectification process of web-based micro-loan business with local regulators from 17 provinces that allow online micro-loan business.

The central bank and CBRC did not disclose the details of the meeting, but a micro-loan lender from Guangzhou, southern China's Guangdong Province, said that the local finance regulators reported their survey results of the business and central regulators were reminded about 20 lenders of potential risks, yicai.com reported.

CBRC also plans to control the number of licensed players and kick out unqualified ones, International Financial News reported, noting no more Internet micro-credit licenses will be issued in addition to the current 157 that were already obtained.

Licenses entrustment is also forbidden in the industry, the report added.

According to the rectification plan, the groups in only two categories of institutions could obtain the license: large-scale state-owned-enterprises and leading Internet groups, and each entity can just have one license, the report elaborated.

Small debt claims are not allowed to be traded or securitized, the report said.

"This is just a beginning. Cash loans will be under strict supervision and regulation," said the head of a Beijing-based online loans platform who requested not to be named.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58December 17 2017 14:17:22

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16December 17 2017 14:17:22

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18December 17 2017 14:17:22

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords