Shortly after China’s banking regulator issued new rules for online loans, the central bank started conducting a survey of commercial banks’ joint online consumer lending, indicating that regulators want to get a clear grasp of the $1 trillion market, reported Caixin.
The People’s Bank of China sent the survey notice to commercial banks asking them to submit online consumer lending data as of December 2018, June 2019, December 2019 and the first six months of 2020, Caixin learned from banking industry insiders. Specifically, the central bank required separate data on loans through Ant Financial’s lending platforms, Huabei and Jiebei.
The Ant reporting requirement shows regulators’ particular interest in the two giant online consumer lending platforms. With more than 100 million users, Huabei and Jiebei are two of the main lending platforms commercial banks collaborate with. Commercial banks in Beijing extended more than RMB 40 billion ($5.7 billion) of loans in collaboration with fintech companies in 2019, according to Li Mingxiao, director of the Beijing office of the China Banking and Insurance Regulatory Commission (CBIRC).
Banks are required to report the total amount, interest rate and non-performing ratio of such loans. The data should be submitted by the end of July, the notice said.