China's National Financial Regulatory Administration published a notice setting out supervisory requirements for commercial banks’ internet-assisted lending business, aiming to standardise business conduct, strengthen risk management and improve the quality and efficiency of financial services. The 10-article notice supplements the existing regulatory framework for internet lending and requires banks to follow principles including head-office centralised management, alignment of authority, responsibility and returns, reasonable risk-based pricing, and an appropriate business scale. It strengthens the head office’s management accountability, introduces admission requirements for platform operating institutions and credit enhancement service institutions, and requires tighter management of business costs, fees and operating efficiency alongside more standardised pricing mechanisms. Banks must also meet more granular self-run risk control expectations, prevent risks from excessive credit enhancement by enhancement providers, and assume primary responsibility for protecting financial consumers’ rights and interests.
China Banking and Insurance Regulatory Commission 2025-04-03
China's National Financial Regulatory Administration issues notice tightening commercial banks’ internet-assisted lending management effective 1 October 2025
China's National Financial Regulatory Administration issued a notice detailing supervisory requirements for commercial banks' internet-assisted lending to standardize conduct and enhance risk management. The 10-article notice supplements existing regulations, emphasizing centralized management, risk-based pricing, and consumer protection. It introduces admission requirements for platform operators and mandates tighter cost management and standardized pricing.