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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.

Market IntelFriday, Mar 14, 2025 8:00 pm ET
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.

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.

Comments

Post
Jazzlike-Check9040
03/15
More loans might lift consumption, but watch defaults.
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Anteater_Able
03/15
@Jazzlike-Check9040 Defaults r a risk, but China's got tools.
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lem_lel
03/15
Personal loans up? Maybe time to hedge, not panic.
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Silver-Feeling6281
23 hour ago
@lem_lel What’s your plan for holding? Any specific stocks in mind?
0
InevitableSwan7
03/15
Due diligence on personal loans? Sounds like regulators want low-risk, high-reward deals.
0
PancakeBreakfest
03/15
@InevitableSwan7 Due diligence isn't about risk-reward, it's about responsible lending.
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GazBB
22 hour ago
@InevitableSwan7 Sounds like regulators want easy gains, huh?
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Running4eva
03/15
China's going big on consumer loans. Banks, buckle up. 🚀
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Blackhole1123
03/15
Diversifying financial products could be the move that shakes up the market.
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lies_are_comforting
03/15
Optimizing interest rates is crucial. Borrowers and lenders need a fair deal.
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OhShit__ItsDrTran
03/15
@lies_are_comforting Fair deal? Markets fluctuate. Get used to it.
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Artistic_Studio2784
23 hour ago
@lies_are_comforting Optimizing rates is key. Lenders & borrowers both win.
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Electrical_Green_258
03/15
Cultivating service consumption is smart. Services often have higher profit margins than goods.
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PunishedRichard
03/15
@Electrical_Green_258 True, services often have fatter margins.
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AIONisMINE
03/15
Longer loan periods, higher limits—banks better be ready for the shift.
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Blackhole1123
03/15
Risky but could be a bullish signal for banks.
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wodentx
23 hour ago
@Blackhole1123 Are banks' stocks undervalued?
0
Affectionate_You_502
03/15
Online credit card issuance could disrupt traditional banking. Keep an eye on that space.
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Rockoalol
03/15
@Affectionate_You_502 Think online cards will really shake things up?
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auradragon1
03/15
China's regulatory moves could boost consumer finance.
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freekittykitty
03/15
China's regulatory body pushing banks to ease loan terms. Could boost consumption, but what's the risk on default?
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RadioactiveCobalt
22 hour ago
@freekittykitty True, easing loan terms can boost consumption but also raises default risks.
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getintocollegern
03/15
Loan relief options are a game-changer for those hit by temporary rough patches.
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lookingforfinaltix
03/15
@getintocollegern Sure
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2strange4things
03/15
Long-term loans could help, if banks play nice.
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DrSilentNut
03/15
I'm holding $TSLA and $AAPL. Diversifying my portfolio to ride different market waves.
0
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