Beijing’s new rules up control over lending risk

BEIJING: China unveiled detailed requirements and quantitative indicators to further tighten control over risks in relation to commercial banks’ online lending business facilitated by their partners, the country’s top banking and insurance regulator has announced.

According to the new requirements, for a single online loan jointly offered by a commercial bank and a partner, the partner must provide no less than 30% of the loan fund. Currently, the partners are usually large internet platforms like Ant Group, an affiliate fintech company of China’s e-commerce giant Alibaba.