The introduction of lending regulations has positive guidance for private lending

The author of this article is a researcher of the Institute of Finance and Law of the China Distressed Asset Industry Alliance

According to the consultation draft, it is clear that the applicable regulations are small lending companies and other non-depository lending organizations without clear supervision and management.

Objectively speaking, the promulgation of the Loan Regulations is both the urgent expectation of the community and industry experts and the force of the objective financial situation:

On the one hand, the increasingly active private lending activities,引伸波幅 the development of China's financial industry has a more and more profound impact on the urgent need to guide more financial water into the "three rural" and small and micro enterprises, to promote the growth of financial inclusion; to promote the development of the credit market in the direction of multi-level.

However, due to the lack of unified lending regulations, it is impossible to effectively regulate, resulting in the high incidence of illegal fund-raising cases in the field of private financing and the existence of greater risk potential, and it is urgent to make private financing sunshine, standardization and legalization.

From the content of the "Loan Regulations", there are clear私人貸款利息 provisions in terms of eligibility access, regulatory licensing, financing conditions, penalties for violations, risk prevention, etc., establishing the legal status and position of non-deposit lending institutions, which will play a vital role in promoting the development of local financial regulation:

First of all, lowered the threshold of entry, relaxed the financing environment conditions and the scope of business activities, allowing students to join more private capital, providing a broad market development for space. Such as "paid-up registered capital, limited liability companies shall not be less than 5 million yuan, limited by shares shall not be less than 10 million yuan. This is substantially lower than some local small loan companies to set up the threshold. And in addition to the main use of its own funds in the financing of lending business, but also through the issuance of bonds, borrowing from shareholders or banking financial institutions, asset securitization and other ways to integrate funds for lending business, but also with P2P cooperation in the transfer of debts, and financing leverage can be increased, a major breakthrough in the original only from two banks into the funds, into the funds shall not exceed one-half of the capital requirements for non-deposit class The lending organization has expanded its "financial resources" and greatly improved its lending capacity. In particular, it can legally operate loan business in provinces, autonomous regions and municipalities directly under the central government, or even across provinces, autonomous regions and municipalities directly under the central government, allowing it to "expand its territory".

The regulatory licensing system will give legal status to all non-depository lending organizations. For example, "non-deposit lending organizations shall apply for pre-approval of company names from the administrative department for industry and commerce in accordance with the law, and apply to the supervisory and administrative department for permission to operate lending business under the name approved by the administrative department for industry and commerce", which allows all non-deposit lending organizations to move from "underground "underground" to "above ground", from "illegal" to "legal", from "guerrilla from "guerrillas" to "regular forces". Can greatly promote the improvement of China's non-deposit lending organization students active and prosperous, but also for the "three rural" and small and medium-sized enterprise management to provide financing convenience, promote China's mass entrepreneurship, innovation market economy construction strategy research and implementation.

Third, to prevent financial risks, the formation of a good local financial ecology. Non-deposit lending institutions submit relevant financial statements to the regulatory authorities in accordance with the law, impose fines of three to five times the amount of illegal loan issuance, illegal public deposit-taking and other illegal acts, suspend or rectify business activities, revoke business licenses for operating loans, and pursue criminal liability, etc., which have a strong regulatory deterrent effect and can effectively purify the industry's business practices. In addition, promoting the cooperation between P2P and small lending companies can build an asset ecosystem, which is conducive to improving the risk control capability of P2P.

Finally, clarifying the principle of territorial supervision and formally giving local governments the right to regulate can mobilize local governments' regulatory enthusiasm and enhance their regulatory responsibilities, which is conducive to resolving financial risks. In the past, due to the lack of establishment of uniform national laws or administrative regulations to regulate, brewing regulatory risk and industry systemic risk potential, the introduction of the "lending regulations" will help to form a unified regulatory standards, defining non-deposit lending organizations such as small loan companies access, scope of operation and regulatory responsibilities. In particular, formally give local governments the right to regulate in order to truly achieve the goal of "who approves who supervises" and effectively break the regulatory chaos of unclear responsibilities and risk mitigation measures are not in place.