Beijing’s municipal banking and insurance regulator is cracking down on the use of personal credit cards to make real estate purchases or other investments.
The regulator issued the “Regulatory Opinions on Strengthening Bank Card Risk Prevention and Control” (关于加强银行卡风险防控的监管意见) on 26 August, stipulating that “commercial banks strengthen monitoring and control the fund flows for credit card large-sum overdrafts and cash instalments operations.”
The Opinions further stipulate that “when necessary [commercial banks] shall require that clients provide receipts and other proofs of purchase, to ensure that personal credit card overdrafts are being used for consumption.
“They cannot be used for productive operations, home purchases and investment, or other non-residential spheres.”
