China’s peak body for internet finance has launched a new campaign to deal with the worsening state of the country’s P2P sector.
On 22 August the National Internet Finance Association of China (NIFA) announced the launch of “self-disciplinary inspection work” for member organisations that engage in P2P lending activities, mandating the submission of a self-inspection and rectification report prior to 31 October via NIFA’s monitoring platform.
NIFA said the inspections have the goal of “raising the risk-prevention capability of member organisations and steadily resolving accumulated risk.”
The self-discipinary inspection work will encompass the three phases of self-inspection and rectification, off-site inspection and on-site inspection.
NIFA has called upon member organisations to “firmly establish compliance and prudential operating concepts…find gaps between their own operations and the provisions of regulatory policies and self-disciplinary standards; expose and accurately grasp their own risk conditions, and undertake swift rectification in key areas and weak links.”
The move comes amidst accelerating closures of China’s P2P lending platforms, leading to the staging of rare public protests in both Beijing and Shanghai by burnt investors.