Financial regulators have unveiled plans to incorporate P2P lending platforms into China’s credit system as part of efforts to address problems with risk and fraud in the online credit sector.
On 2 September China’s Online Financial Risk Special Rectification Work Leadership Team (互联网金融风险专项整治工作领导小组) and the Online Risk Special Rectification Work Leadership Team (网贷风险专项整治工作领导小组) jointly issued the “Notice Concerning Strengthening P2P Online Lending Sector Credit System Establishment” (关于加强P2P网贷领域征信体系建设的通知).
The Notice calls for China’s local online finance offices to drive the incorporation of active P2P online lending platforms into the Credit Reference Center of the People’s Bank of China (人民银行征信中心).
The People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) had previously called for local financial authorities to include the personal information of malfeasants in the P2P lending sector in both the Credit Reference Center and the Baihang Credit (百行征信) systems.
“Online lending involves a very large scope of people and is quite unique, especially when it comes to comparatively weak risk bearing capability and rights protections for lenders,” said Li Aijun (李爱君), head of the Online Finance Legal Research Institute at the China University of Political Science and Law to PBOC’s Financial Times.
“The comprehensive inclusion of P2P in the credit system is an effective protection of the rights and interests of lenders.”