China’s banking regulator (CBIRC) ‘ s new rules tighten requirements for banks’ online lending businesses--> February 23, 2021
China Banking and Insurance Regulatory Commission
online RMB lending

“China’s bank regulator, the China Banking and Insurance Regulatory Commission (CBIRC), said on Saturday tightened requirements on online lending by commercial banks and internet platforms from 2022 in a hope to foster a healthy growth and mitigate any financial crisis.


  • New rules will require all online lending platforms to contribute 30 per cent of the funding for loans they offer in partnership with traditional banks from January 1, 2022, the China Banking and Insurance Regulatory Commission (CBIRC) said.
  • The online loans issued by any commercial banks and its partners may also not be more than 25% of the bank’s net tier-one capital, and 50% of its total balance.


  • The news rules will be effective beginning on mid of 2022, online lending platforms such as Ant Group, JD Digits and Lufax will have to put forth more capital for the growing online loan services.
  • The tougher regulation came as fintech expanded their reach to over a billion online users and in collaboration with the commercial banking partners, lending out US$516 billion in 2019, a 42 % rise from 2018, alarming the regulators about potential systemic risks.
  • due to regulatory issues, Ant Group’s high-profile listing was suspended last year.

#onlinelending #CBIRC #onlineloan

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