New regulation on liquidity management to prevent excess credit

Source: Internet
Author: User
Keywords Loans borrowers financial institutions
Tags credit financial financial institutions officials officials said operation the new use
On the afternoon of February 20, the interim measures for the management of liquidity loans were formally implemented on February 12. Its provisions, liquidity loans shall not be used for assets, equity investment.  The relevant head of the CBRC said that it was necessary to prevent excess credit. The new regulation said that the working capital loan shall not be used for investment in fixed assets or equity, and shall not be used in the country's prohibition of production and operation.  The Working capital loan shall not be diverted, and the lender shall inspect and supervise the use of the liquidity loan as stipulated in the contract.  The relevant head of the CBRC said that the new rules require financial institutions to reasonably calculate the liquidity requirements and then determine the amount and duration to prevent excess credit. "Misappropriation of loans derives from loans beyond the actual liquidity requirements of borrowers." "The new rules should not only guarantee the normal operation of the enterprises to the demand for liquidity, but also prevent excessive lending leading to misappropriation of funds." "The new regulation stipulates that financial institutions should reasonably calculate the borrower's liquidity demand and carefully determine the total amount of credit, not exceeding the actual needs of the borrower." Financial institutions should investigate the real financial status of borrowers, such as debt, accounts receivable, inventory, etc. (Ding from Beijing)
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