CBIRC published "Interim Measures for the Administration of Internet Loans of Commercial Banks," along with questions and answers (Q&A) related to the measures. The measures provide rules related to risk management system, risk data and risk model management, information technology risk management, loan cooperation management, supervision and administration, and supplementary provisions. The measures shall come into force on the date of promulgation. The transition period is two years from the date of implementation of these measures.
The measures define the scope of internet loans and clarify risk management requirements. The measures stipulate that commercial banks should establish a comprehensive risk management system for the internet loan business, conduct risk control in the entire process, strengthen the management of risk data and risk models, and prevent and control information technology risks. The measures also standardize the management of cooperative institutions. Commercial banks are required to establish and improve the access and exit mechanisms of cooperative institutions and strengthen management and responsibilities in terms of internal control system, information disclosure, and continuous management. The measures put forward regulatory requirements for commercial banks to submit reports on internet loan business conditions, self-assessments, and major event reports.
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Effective Date: Promulgation Date
Keywords: Asia Pacific, China, Banking, Q&A, Technology Risk, Credit Risk, Conduct Risk, Governance, CBIRC
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