China’s Central Bank Encourages More Consumer Finance Firms
The PBOC, China’s central bank, and the banking regulator Wednesday issued guidelines outlining measures that could spur consumption in promising fields such as healthcare.
Financial institutions were encouraged to set up more “consumer finance” firms, which lend money to consumers, accoPBOC, consumer, finance, sectors, healthcare, regulator, credit, payments, debts, requirements, cars, rding to the guidelines by the People’s Bank of China and China Banking Regulatory Commission.
China 1st began to offer consumers credit in Y 2010 with a pilot program involving 4 financial agencies, including Bank of China Consumer Finance Co. Ltd. and Bank of Beijing Consumer Finance Co. Ltd.
Consumer credit firms were encouraged to offer more services for fields including healthcare, information and Green consumption.
Financial institutions were given the authority to set their own down payment requirements for consumers wanting to buy new energy autos and 2nd-hand cars, as long as the deposits met the minimum payment rates of 15 and 30%.
The guidelines also urged financial institutions to formulate new mechanisms to guard against risks in the dynamic credit market, such as defaulting debtors.
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HeffX-LTN
Paul Ebeling
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