(Yicai Global) Nov. 24 -- The China Banking Regulatory Commission (CBRC) is drafting administrative rules for online micro-lending, which will be released next week. However, regulatory policies could differ across regions despite contrary market rumors that suggest regulators would impose a blanket ban on the issuance of licenses for online micro-lending.
China's central bank PBOC and the CBRC held a working conference to tackle problems in the online micro-lending industry yesterday. The meeting held a wide-ranging discussion on all aspects of the matter, but the relevant policies have yet to be announced, a meeting participant told Yicai Global.
The administrative rules to be released next week will not contain many new, disruptive policies, an insider close to CBRC told Yicai Global, adding China has already published explicit policies on online micro-lending.
The market rumors that suggest CBRC will stop granting licenses to online payday lenders are partly inaccurate, the insider told Yicai Global.
The regulator may allow online micro-lenders that have already received approvals to complete their setup work, but regulatory policies could differ across regions, said a chairman of a micro-loan company close to a financial work officer attending the conference.
Yesterday's working conference lasted long hours. Provinces running a pilot program for online micro-lenders held an "intensive meeting," whose details were not available.
As of Nov. 6, 2017, China granted a total of 242 licenses to online micro lenders, of which 215 have registered with industry and commerce departments, six have received approvals from local financial work offices but have not registered yet, and 21 have passed the public disclosure period set by financial work offices. An additional of nearly 60 firms also seek to set up online micro-lending firms.