(Yicai Global) Oct. 30 -- In response to recent reports that the swift growth of cash loans cries out for standardization, relevant officials of the People's Bank of China (PBOC) said all financial business including cash loans will be included at the supervision in the 2017 China Internet Finance Forum on Oct. 28, China Central Television news reported.
As cash loans mushroom, all financial operations will be supervised. To prevent and resolve risks, the PBOC and related departments have conducted internet financial risk special rectification activities and preliminary results have been registered, with a rising risk momentum effectively curbed, said Ji Zhihong, director of PBOC's Financial Markets Division.
The special rectification work will ensue in accordance with related requirements on economic work outlined in the report of 19th National Party Congress. The work sets systemic financial risk prevention as its bottom line and seeks to improve the legal and regulatory framework. It will innovate oversight methods, implement pervasive supervision, establish an oversight system for online financing and exercise prudential supervision and market access system to guide its return to its economic origin as a service entity.
In recent years, cash loans offered to wage-earners and college students have suddenly emerged to become one of the most rapidly-developing business types in the internet finance field. Cash loans -- also called small 'payday loans' -- feature convenient and flexible borrowing as well as repayment. Usurious interest rates, strong-arm collection practices, abuse of personal information and other issues are emerging one after another to manifest the latent dangers to the sound development of internet finance these loans pose.