China to Apply National Ratings Scheme to Online Microlenders


China’s banking regulator has flagged the launch of a new ratings system for online micro-loan platforms.

The China Banking and Insurance Regulatory Commission (CBIRC) will include a national ratings system for online micro-lenders as part of regulations that it is currently in the process of drafting, according to a report from the Chinese People’s Political Consultative Conference (CPPCC).

CBIRC said that the proposed management system would help to improve incentive and restraint mechanisms, as well as the efficiency of regulatory oversight.

The banking regulator also said that it would pursue research into issues such as providing online microlenders with broader financing channels, and fostering cooperation with other financial institutions.