The China Banking and Insurance Regulatory Commission has issued the Interim Measures for the Supervision and Administration of Microloan Companies, setting a consolidated framework for how microloan firms should operate, manage risk and protect consumers, and clarifying supervisory responsibilities across central and local authorities. The measures comprise seven chapters and 60 articles covering business operations, corporate governance and risk management, consumer rights protection, exit arrangements for abnormally operating firms, and supervision. Key provisions define the permitted business scope, set loan concentration ratio requirements and revise the cap on outstanding loans to a single borrower to reinforce a small-ticket, diversified lending model; prohibit illegal “channel” practices such as renting or lending licences; and tighten external funding by applying a strict “1+4” financing leverage multiple and specifying conditions for bond issuance and asset securitisation. Risk and governance rules include more detailed related-party transaction management, non-performing loan classification standards and dedicated account management for lending funds, while online microloan companies must meet requirements for end-to-end online processing, robust risk controls and network and information security, including roster-based management of partner institutions. Consumer protection provisions address disclosure, risk warnings, marketing and the collection and use of customer information, alongside negative-list supervision for violations and improper conduct. Implementation is to be supported through coordination with local financial management authorities, with enhanced central-local information sharing and supervisory collaboration.

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