The Financial Regulatory Authority has issued a document urging financial institutions to develop consumer finance and support the growth of consumption by increasing personal consumption loans and exploring online credit card issuance.
1min read Securities Times reporter Qin Yanling
The China Financial Regulatory Authority's March 14 news showed that the China Financial Regulatory Authority had recently issued a notice to require financial institutions to develop consumer finance in terms of increasing consumer finance supply, optimizing consumer finance management, conducting personal consumer loan relief, and optimizing the consumer finance environment to help boost consumption.
"Stimulating consumption and improving investment efficiency and expanding domestic demand in all directions" is the top priority of this year's work tasks. Li Yunze, governor of the China Financial Regulatory Authority, revealed the work ideas of financial support for all-round expansion of domestic demand when he accepted media interviews in the first "Minister's Channel" of the third session of the 14th National People's Congress on March 5. He said that for long-term and large-scale consumption needs, the research will be conducted to raise the loan amount and extend the loan period.
According to the revised "Personal Loan Management Method" released last year, the loan period of personal consumption loans shall not exceed five years. From the current general situation of bank consumption loan products, the longest loan period of consumption loans is usually three or five years, and the highest credit limit is usually 200,000 yuan online. For some excellent customers, some joint-stock banks can lend up to 300,000 yuan online.
The China Financial Regulatory Authority further clarified this time that it encourages banks and financial institutions to increase the loan amount and loan period of personal consumption loans in a risk-controlled manner, and reasonably set the interest rate. It also optimizes resource allocation and improves the requirements for personal consumption loan due diligence and exemption from liability.
Ask Aime: What impact will the China Financial Regulatory Authority's measures to boost consumer finance have on the domestic market and economy?
The China Financial Regulatory Authority also supports banks and financial institutions to conduct personal consumption loan relief. Institutions can reasonably agree on the loan repayment period and frequency with borrowers who temporarily encounter difficulties based on their credit records and repayment guarantees. According to the borrower's application, it will provide loan support for borrowers who meet the conditions after being approved.
Specifically, the China Financial Regulatory Authority requires financial institutions to enrich and improve financial products and services around expanding commodity consumption, developing service consumption, and cultivating new consumption.
