CBRC: Four boundaries for peer-to-peer network lending

Abstract: Yesterday, the disposal of illegal fund-raising joint Meeting held a press conference, the director of the Banking Regulatory Commission Liu Changjun said, Peer-to-peer network lending platform as a new financial industry, in encouraging its innovation and development, to clear four boundaries: first, to clear

Yesterday, the disposal of illegal fund-raising joint Meeting held a press conference, Liu Changjun, director of the CBRC's disposal office, said that Peer-to-peer network lending platform as a new financial industry, while encouraging its innovation and development, to clear four boundaries: first, to clear the intermediary nature of the platform, the second is to clear the platform itself can not provide security, Third, should not be collected funds to engage in capital pool, four is not illegal absorption of public funds.

Liu Changjun said that the current Peer-to-peer web lending development, the number of new peer-to-peer lending sites and the rapid rise in the scale of loans, has repeatedly appeared to honour the crisis, closed down, the volume of the run, and some have been suspected of illegal fund-raising. According to his introduction, internet borrowing is suspected of illegal fund-raising mainly three kinds of situations, reminding the public to pay attention.

One is to engage in capital pool, some Peer-to-peer network lending platform through the design of the loan demand for financial products sold to lenders, or the first collection of funds to look for the borrower, so that the lender funds into the platform account, generating a pool of funds.

Second, some Peer-to-peer network lending platform operators do not fulfill the authenticity of the borrower's verification obligations, failed to find in time or even acquiesce to the borrower on the platform as a number of false borrowers in the name of a large number of false borrowing information, to not specific majority of people to raise funds for investment in real estate, stocks, bonds Some directly will illegally raise money usury out to earn spreads.

Third, the individual Peer-to-peer network lending platform operators, the issue of false high borrowing funds to raise money, to take the new old Ponzi scheme, short-term fund-raising, some for their own production and operation, and some even to abscond.

Liu Changjun said that the public financing of financial innovation and market improvement has indeed played a certain role in promoting the innovation is to support and encourage, but any innovation must be within the scope of the law, not beyond the legal red line.

He said that the different types of public financing, the legal risks faced by different. Similar to peer-to-peer credit category, to be positioned in the intermediary platform, return to the essence of platform-type intermediary, the stock of equity and return class, there are corresponding business provisions, as long as the business, we should strictly adhere to the legal Red line, compliance with the legal conduct of business activities.