(Yicai Global) Oct. 30 -- Ever more platforms are embarking on the bank depository business as the Chinese Government further tightens its screws on the internet finance industry.
Some 602 internet finance platforms in China have instituted bank fund depositary systems, making up 32 percent of the total.
The China Banking Regulatory Commission (CBRC) outed its scheme to rectify online loans in August last year, granting a year for transition to the new regime. As the time limit approaches, the number of platforms shifting to bank depositary business reached 117 in August this year, data show from internet finance information platform Rong360.com show.
On June 30, the authorities pushed back the time limit to next June, and this caused a slight drop in the number of new platforms participating in bank depositary business last month and this month, with only 14 platforms added as of Oct. 22, Economic Information Daily reported today.
At present, 47 banks provide funds depositary services for web finance platforms, 26 of which are city commercial banks. With the implementation of regulatory policies, these banks began to actively develop their internet finance businesses, thus achieving growth through differentiated competition, industry insiders explained.
Of platforms plying bank funds depository business, 15 face problems of cessation of business and difficulties of withdrawal. Thus, investors should not opt for an online loan platform just because of its bank depository business alone, Rong360.com staff advised.