China regulator finalizes guidelines on banks’ internet loan businesses
SHANGHAI (Reuters) – China’s monetary establishment regulator on Saturday tightened requirements on the internet loan enterprise of financial banks, amid heightened scrutiny of on-line lending by internet giants equal to Ant Group Co, the finance arm of Alibaba Group Holding Ltd.
Commercial banks ought to collectively contribute funds to topic internet loans with a confederate, and the proportion of capital from the confederate in a loan should not be decrease than 30%, the China Banking and Insurance Regulatory Commission said in a uncover.
The stability of internet loans issued by a monetary establishment with one confederate, along with its related occasions, shouldn’t exceed 25% of the monetary establishment’s internet tier-one capital, it said.
In addition, the steadiness of internet loans issued collectively by industrial banks and cooperative institutions may not exceed 50% of the monetary establishment’s full stability, the guidelines …