CBRC reform will bring Peer-to-peer into the Department of General Finance

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Yesterday, China's Banking Regulatory Commission announced the restructuring of the two departments divided into joint-stock banks and City firms Supervision Department, the Trust Supervision department from the Bank supervision of the Department of Separation, and the new Prudential Regulation Bureau, on-site Inspection Bureau, the Hui Financial bureau.

Among them, the general financial work Department involved many, including the original two small enterprises Office, Cooperation Department of the Rural Financial Services regulatory Office, Financing guarantee Department, the newly established Small Loan Company Association, net Loan Supervision (Peer-to-peer) and so on. Peer-to-peer will be vested in the Department of Finance and Management, and the rural finance in Beijing East is also the management.

It is understood that this is the CBRC since its inception in 2003, the first major restructuring, the CBRC regulatory framework reform is to focus on stopgap decentralization of administrative power, but not change the establishment. The new mechanism will be officially run on March 1.

Previously, Peer-to-peer industry has been in a barbaric state of growth, such as risk control and other issues have become the most need to solve the problem. Data show that up to the end of 2014, the domestic Peer-to-peer platform has reached 1575, up 96.88% from 2013, but the problem platform is also soaring, the annual problem platform reached 275, on average about 6 Peer-to-peer platform is a problem platform.

Peer-to-peer industry before the frequent occurrence of the runaway incident, and the industry's new rise in the lack of industry norms. Internet Wealth management products attract investors with high returns. However, these network financing products just appeared, entered the state of disorderly development, so the crisis also follows.

And the CBRC reform, the Peer-to-peer network loans into the general benefits of finance, means that the future industry supervision will be strengthened. In this respect, an insider told 36 Krypton:

The CBRC's establishment of the Department of General Financial services means that regulators are increasingly clear about the regulatory approach to Peer-to-peer industries. With a clear classification and positioning, the accompanying regulatory guidelines are expected to accelerate the launch. At the same time, the classification of Pu-hui finance also means that the industry's rationality has been recognized by the regulatory level. This is an obvious positive for the industry.

As practitioners in the industry, we hope that the higher the threshold for regulation, the better, the more stringent the screening of the working institutions, the likelihood of their risk will be less.

After a large number of escape incidents, peer-to-peer supervision has aroused widespread concern, the regulatory rules are expected to be introduced this year. The CBRC has already made clear the four bottom line of Peer-to-peer network loan platform: one should clear platform intermediary nature; second, the platform itself should not provide security, three to clear platform should not engage in capital pool operation, four to clear platform should not illegally absorb public funds. However, in the current market, the need for specific regulations.

After the regulations are in place, the industry may speed up the shuffle, with some weaker companies likely to take the lead.