China’s Central Bank to Stiffen Oversight of Internet Finance Firms
Xu Wei
DATE:  Jan 06 2021
/ SOURCE:  Yicai
China’s Central Bank to Stiffen Oversight of Internet Finance Firms China’s Central Bank to Stiffen Oversight of Internet Finance Firms

(Yicai Global) Jan. 6 -- China’s central bank said it intends to tighten supervision of internet finance companies this year.

At this year’s work conference, which started on Jan. 4, the People's Bank of China said it would strengthen efforts to curb monopolistic activities in internet finance, as well as increase supervision of the online payment sector, preventing the disorderly expansion of credit and coordinating financial development and security. 

In addition, personal credit investigation services will have to be licensed in order to operate, according to the statement posted on the PBOC’s website today.

Regarding the bond market, the PBOC said it would improve the legal framework and facilitate the interconnection of infrastructure. It plans to improve the multi-channel bond default resolution mechanism and intensify the investigation and punishment of legal violations such as fraudulent issuance.

The work conference also stated that it is necessary to roll out a long-term real estate mechanism, with the aim of improving financial support for the property leasing policy system.

The PBOC pledged to deepen the reform of quoted interest rates in the debt market, drive the marketization of deposit interest rates, and maintain the basic stability of the yuan’s exchange rate.

The central bank said it would continue to allow deferred repayment of loans by small and micro enterprises, and that it will guide financial institutions to support the real economy.

Measures to protect the environment were also announced, including the formation of a carbon trading market and the setting of reasonable prices for carbon emissions. In addition, the PBOC proposed a policy incentive and restraint system, improvement of green financial products and the promotion of international cooperation in green finance.

Editor: Tom Litting

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Keywords:   PBOC,Internet Companies,Central Bank