China’s Banking Regulator Cracks Down on Fintech-Fueled Joint Lending

Caixin Global | Nov 5, 2020 at 6:11 AM
  • China’s banking regulator barred joint-stock banks from funneling funds to third parties in a crackdown on the fintech-fueled boom in joint-lending deals.
  • Hundreds of banks and other financial institutions have joined in pooling funds for lending, including Ant Group, Tencent-backed online bank WeBank and Ping An Easy Money, a unit of China’s largest insurer, Ping An Insurance.
  • The China Banking and Insurance Regulatory Commission (CBIRC) issued a new guideline in September after finding problems in the joint-lending market in a probe of a bank, a property insurance company and a third-party institution.