Chinese regulator drafts new rules on online bank lending to curb risks

Chinese regulator drafts new rules on online bank lending to curb risks

China Banking Regulatory Commission (CBRC) in Beijing, China. Photographer: Nelson Ching

China‘s banking and insurance regulator on Saturday issued draft rules on commercial banks’ online lending business, banning the use of such loans for riskier investments and capping banks’ online consumer credit, in a move to rein in financial risks.

The regulations are the first that specifically target banks’ online lending business, which has been expanded aggressively under the development of financial technology, which has led to the misuse of banks’ consumer credit and higher household leverage.

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