China’s Banking Regulator Releases Amended Versions of Fixed Asset Loan, Liquidity Loan, Personal Loan and Project Finance Rules

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The China Banking and Insurance Regulatory Commission (CBIRC) has just issued the amended draft versions of several key banking regulations for the solicitation of opinions from the public.

The draft versions that were collectively released by CBIRC on 6 January included:

  • The “Fixed Asset Loan Administrative Measures” (固定资产贷款管理办法(征求意见稿)).
  • The “Liquidity Loan Administrative Measures” (流动资金贷款管理办法(征求意见稿)).
  • The “Personal Loan Administrative Measures” (个人贷款管理办法(征求意见稿)).
  • The “Project Finance Operation Management Provisions” (项目融资业务管理规定(征求意见稿)).

Members of the public will have a month to provide their feedback, with the feedback period slated to conclude on 6 February 2023.

CBIRC said that the amendments have the goal of “further raising the loan management capability and financial services efficiency of banking sector financial institutions, and supporting finance in servicing the real economy.”

Key amendments include:

  1. Expanding applications and target areas for the usage of liquidity loans and fixed asset loans.
  2. Further clarifying the entrusted payment standards for different types of loans; optimising entrusted payment management requirements and improving the efficiency of entrusted payment implementation.
  3. Adjustments to operational handling methods based on new operating scenarios. Supporting the application of big data and off-site technology, and undertaking loan surveys and management.
  4. Increasing the flexibility and convenience of loan handling. Further optimising the estimation requirements for liquidity loans. Increasing content for handling of fixed asset loans, to better suit actual financing conditions.
  5. Clarifying loan maturity requirements. Guiding commercial banks in actively preventing loan maturity mismatch risk, and optimisation of the lending structure.
  6. Integrating other related loan management systems, and raising the systemic nature of regulations.