News Analysis: China's new loan regulations fully implemented impact geometry

Xinhua Beijing, February 20 (reporter Bai Jiechun, Liu Shiping) China Banking Regulatory Commission 20th announced that the "liquidity loan management interim measures" and "personal loan management interim measures" has recently been formally implemented. In addition to the previous release of the "interim measures for the management of fixed assets loans" "project financing Business Guidelines", collectively referred to as the new loan rules of "three methods a guideline" since the beginning of the full implementation, then this will give the entire credit market impact? Can the risk be effectively prevented?　　What challenges will commercial banks face?　　To prevent loan diversion to ensure the flow of credit funds to the real economy according to the introduction, loan new regulations strengthen the loan use management, the loan funds to the transaction object to pay the "beneficiary principle" as the hand, emphasis on the authenticity of loan funds transactions, prevent and eliminate the use of loans and fraud. If, in view of the present practice, the liquidity loan has been diverted for other purposes such as fixed assets investment, the interim measures for the management of working capital loans expressly stipulates 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.　　At the same time, liquidity loans should not be diverted.　　"Interim measures for the administration of personal loans" also expressly stipulates that lenders shall not issue personal loans without a specified purpose;　　"Through the necessary procedures and internal controls, the new loan regulation regulates the loan payment behavior of commercial banks, ensures that the loan funds are used in accordance with the contract, prevents the borrower from being diverted, promotes the real economic development of the loan funds, and plays the role of financial support to the entity economy," the official said.　　Preventing loan risk and improving the fine level of credit management industry experts pointed out that the new loan regulation strengthens the whole process of loan management, promoting the transformation of traditional loan management mode of commercial Bank, which is helpful to improve the fine level of credit asset management of Commercial bank. "Interim measures for the management of liquidity loans" clearly requires that banking financial institutions should be close to the borrower's reality, reasonably measure the borrower's liquidity needs, and then determine the amount and duration of the liquidity loan and prevent the excess credit.　　Through the reasonable calculation of the working capital loan, it can not only effectively meet the demand of the normal operation of the enterprise for the liquidity loan, but also effectively prevent the loan funds from being diverted because the loan is paid more than the actual demand. For the loan management of working capital loans, the CBRC requires the lender to pay attention to the key warning signals of the borrower's operation, management, finance and capital flow, and take effective measures such as prepayment and additional guarantee to prevent the loan risk from being solved.　　It is emphasized that the lender should strengthen the control over the returned funds by reasonably setting the variety and period of loan business, setting up special funds to withdraw accounts, and negotiating an account management agreement. "Interim measures for the administration of personal loans", in terms of payment management, expressly stipulates that, except in exceptional circumstances, individual loan funds shall be paid to the borrower's transaction by way of a trustee's fiduciary payment, that is, the lender shall pay the loan funds toA borrower's trading object in accordance with the agreed purpose of the contract.　　Shusong, deputy director of the Financial Research Institute of the Development Research Center of the State Council, pointed out that the new loan rules further strengthened the risk control mechanism and provided "braking" mechanism and risk prevention mechanism for the sound operation of the banking industry. Help to protect the interests of financial consumers good for the banking sector on the implementation of new lending regulations will affect the cost of banks and borrowers, the CBRC said, after some of the bank's actual business calculation shows that the new loan regulation of loan payment management provisions to ensure that the borrower's normal use requirements, can also guarantee the timely and effective payment of loan funds, but also can reduce the borrower's interest expenses, save the borrower's financial costs.　　For banks, it may be from a single business to increase the operating costs of some links, but in fact, as a result of the reduction of loan diversion risk, the overall quality of loans will be improved, the overall efficiency of banks will be improved. For the financial consumer most concerned about the "personal loan management interim measures", the CBRC director said that it did not raise the threshold for personal loans, will not affect the application of personal loans.　　At the same time, the concept of Trustee payment management, which is proposed by the lender, has been the current practice of banks and will not affect the use of funds by borrowers. Southwest Securities Banking analyst Li Lichun that the full implementation of the new loan rules will be a positive for the banking industry. Commercial banks also regulate their own risks more properly and adjust their credit flow rhythmically.