China’s leading authority for internet financial risk has signalled heightened measures to deal with risk in relation to online P2P lending.
The Internet Financial Risk Specialist Rectification Work Leadership Team (互联网金融风险专项整治工作领导小组) and the Internet Loan Risk Specialist Rectification Work Leadership Team (网络借贷风险专项整治工作领导小组) recently convened a meeting which confirmed that 2019 would be a key year for the “specialist rectification of online lending risk,” according to a report from state-owned media citing the Chinese central bank and the China Banking and Insurance Regulatory Commission (CBIRC).
According to the meeting all institutions that engage in financial activities will be subject to supervision and regulation by regulators, while local authorities will be required to conduct compliance inspections of all online lending institutions, as well as gradually increase compliant prudential operating capability.
China’s online financial risk authorities will engage in the “vigorous and orderly disposal of outstanding risk…steadily and appropriately drive category-based disposal, guides institutions in changing models or making benign exits; steadily advance filing preparation work, and firmly strike against platforms in severe breach of laws or regulations.”
The meeting called for “further expanding risk disposal vigour [and] protecting the lawful rights and interests of investors to the greatest extent,” as well as “promptly responding to investor concerns and complaints, and clearing out complaint and rights maintenance channels.”
“We will complete the integration into relevant informations systems of institutions currently operating that satisfy set conditions, and expand the vigour of data monitoring and information disclosures.”