CBRC publishes interim measures for personal loan management draft

CBRC publishes "Interim measures for the administration of personal loans" Draft new Express message yesterday, the CBRC issued "interim measures for the administration of Personal Loans" (hereinafter referred to as "measures") and openly consulted, which aims at standardizing the personal loan business behavior of banking financial institutions, strengthening the prudent management of personal loan business and effectively guarding against risks. This is China's first personal loan management regulations.　　The approach emphasizes that lenders are not allowed to issue personal loans without a specific purpose and that the loan interview system must be established and strictly enforced.　　In recent years, with the continuous development of China's national economy and the increasingly active financial markets, personal loan business has developed rapidly, only the first half of 2009, the cumulative increase in personal consumption loans of 650.8 billion yuan, compared with the same period last year more than 391.7 billion yuan.　　The CBRC said that the personal loan management of commercial banks in China lacks a unified standard, and that some banking financial institutions operate illegally, especially "fake mortgage", "Top imposter" and loan misappropriation, which affect the capital entering the real economy. The scheme provides that lenders are not allowed to issue personal loans without a specified purpose. At the same time, the lender should strengthen the loan fund payment management, according to the contract use to the borrower's trading object to pay. In principle, the personal loan funds shall be paid to the borrower by the trustee payment method.　　The approach emphasizes that lenders should require borrowers to sign loan contracts and other related documents in person, establish and strictly implement loan interview system, grasp the authenticity of the borrower's transaction, the real borrowing purpose, the repayment intention and repayment ability, and prevent the occurrence of false mortgage business.　　The CBRC said that the draft did not set additional conditions for the application of specific types of loans and that the monitoring and management of the whole process of the loan did not raise the threshold of personal access to credit and therefore would not have an impact on the acquisition of credit. The method stipulates that the financial institutions of the banking sector shall grant loans to the farmers and the individual loans of the auto finance companies, and may temporarily not implement these measures; The scheme is divided into eight chapters and 44 articles. The deadline for soliciting comments is November 19. At the same time, the banking financial institutions were given a three-month preparation period. After the implementation of the scheme, the CBRC will closely follow up on the implementation of the scheme.