Regulators for the supervision of cash loans finally fired the first arrow. According to media reports, on November 21, the Leading Group for Internet Financial Risk Remediation Leading Group Office issued a special urgency document to all provinces (autonomous regions and municipalities) to rectify and deal with the "Circular on Temporarily Suspending the Establishment of Network Microcredit Company", requiring all levels of small The regulatory authorities for loan companies are not allowed to newly set up a network (Internet) microfinance company with immediate effect and prohibit small loan companies from operating across regions.
The "Notice" shows that in recent years, some regions have successively set up network micro-loan companies or micro-loan companies to carry out network micro-loan businesses, and some of them have potential risks in cash loan business. In order to implement the directives of the leaders of the State Council and the offices of small ban group of special rectification work on commercial credit risks, the supervisory departments of small credit lending companies at all levels shall not newly approve the establishment of a network (internet) microcredit company and prohibit the newly approved small ban loans Amount of loan companies across provinces (autonomous regions and municipalities) to carry out micro-loan business.
In addition, the latest news is that in addition to controlling the online microloan license in an incremental manner, remediation policies are also in the pipeline in preparation for the inventory and are expected to have tighter restrictions on the scope of lending, interest rates, institutional cooperation and leverage ratio .
Internet micro-loans have a strong connection with the current cash loan business. Some cash loan companies lend through the application of the network micro-loan license, while some cash loan companies use the small loan companies as a source of funds. Restrictions on the network of small loans in the loan qualifications, funding sources, the scale of lending and other aspects of the cash loan industry will have a significant impact.
How is the network small loan license?
Why online micro-credit by the mutual gold companies, cash loan companies of all ages? Let's start with the development of small loan companies and small network loans.
In May 2008, the Central Bank and the China Banking Regulatory Commission issued the "Guiding Opinion on the Pilot Project of Small Loan Companies" in order to develop inclusive finance and guide capital flows to rural and underdeveloped areas and to improve financial services in rural areas. Credit company pilot. To apply for setting up a small loan company, an official application shall be made to the competent provincial government department. After approval, it shall go to the local industrial and commercial administration department to apply for registration and obtain a business license.
In other words, small loan company license application is relatively simple, do not have to apply to the central level of the financial management department, the provincial competent department for approval. Relatively speaking, the central-level regulatory authorities pay more attention to risk prevention, more careful examination and approval of the licenses; while the provincial departments are more emphasis on development, approval of the licenses as a whole will be more relaxed.
Microfinance companies have strong territoriality and can only operate in the provinces where they are registered and can not operate in different regions. This makes small loan companies difficult to grow bigger. However, this situation has been a breakthrough in 2010. In June of that year, with the approval of the Zhejiang provincial government, Zhejiang Alibaba Micro-Loan Co., Ltd. was established and allowed to conduct nationwide consultation and other approved businesses for the development of small loans, small business development, management and finance, etc. . This made Ali Microfinance the first truly small internet loan company to lend across the country. Since then, Ali and Chongqing in the network two small loan license,
The competition among provinces is fierce. Opening a hole in one province is bound to be followed up by other provinces. Over the past few years, a large number of small online loan companies have been set up, including Chongqing, Guangdong, Jiangsu and Jiangxi.
The concept of online small loan company is clear in 2015, the central bank and other departments released "on the promotion of the healthy development of Internet finance guidance", the document states: Internet micro-loans refers to the Internet companies through its control of the small Loan companies, the use of the Internet to provide customers with small loans. Microfinance Network Microfinance companies should comply with the existing regulatory requirements, to play the advantages of online loans, and strive to reduce customer financing costs. Internet banking supervision by the CBRC.
After the concept is clear, the small loan network will usher in the peak of development. Especially in 2016, a large number of small network loan companies were approved. According to the incomplete statistics released by First Consumer Finance, as of November 6, 2017, there are 242 online microloan licenses on the market, of which 215 have completed business registration, and have been approved by the local financial service but have not yet been registered There are 6, has been the financial office show period of 21, there are not less than 60 companies intends to start the establishment of small network of small companies. However, the proportion of online small loan companies in the total amount of small loan companies is not large at present. The central bank data show that as of the end of September 2017, there are 8,610 small loan companies nationwide. Loan balance was 970.4 billion yuan.
Many cash lending companies have put in place network microloan licenses. For example, they have won two online microloan licenses in Jiangxi, while the shareholder of Handicrafts Digital (08255) has purchased a loan of 35 million yuan for Anshan Microfinance Limited, a small loan license.
Many large enterprises also have small loan licenses. Companies such as BATJ, Xiaomi, Wanda, Midea, Ctrip and Yixin have obtained small loan licenses in different places.
Network microloan license and micro-loan license, net loan What is the difference?
Why mutual gold companies will favor the small loan license? There are several main reasons.
All kinds of licenses, small loans with the qualifications to lend, but also relatively easier to apply, cost-effective. Licenses that qualify for lending include commercial banks, consumer finance companies, small loan companies and others. Relatively speaking, small loan companies to apply for the most easy, after all, to the provincial financial management approval than the central-level financial regulatory approval to be more easily adopted in the financial risk and economic development of choice, the provincial department is easy to bias By. And other licenses into the bank, consumer companies such as the background of shareholders, registered capital and so put forward high demands, the general shareholders is not easy to meet.
Although the amount of small loans is not as good as that of banks and consumer companies, which are mainly reflected in the fact that small loan companies are not well-equipped, they can also give cash lending companies a sense of security to a certain extent. Although only the network of small loans, but after all, is approved by the government departments, it can be regarded as licensed business. Under the regulatory tone that "all financial businesses should be licensed," there is at least a smaller loan license than no one.
Compared with traditional small loan companies, small network loans can be operated nationwide, which can form a larger scale advantage. At the same time, small network loans can fully utilize the data, technology and other resources formed by Internet companies to make risk control and access based on big data technologies, and can complete the approval, loan lending and risk control processes online.
Net lending platform can also do online microfinance, compared with the network of small loans, there is no financial side, not from the public to absorb funds, it will reduce the regulatory pressure. Small network loans are not subject to a single loan 200,000 and 1 million limit, you can issue payments in excess of this limit. Of course, the advantage of the network loan platform is that there is no limit to the pole rate, while the small loan companies are limited to the level of leverage, the loan balance basically will not exceed three times the registered capital.
What is the impact of online microloan suspension approval?
Because there is too much connection with the cash loan business, the small network loans are brought into the regulatory sight, no matter the stock control or incremental control, they are already on the verge of it. In the past few years, small loan companies generally did not realize the original intention of "guiding the flow of funds to rural areas and other underdeveloped areas and improving financial services in rural areas", but to a certain extent promoted the issue of cash loans that are highly controversial Financial services. In this way, the future supervision is bound to be strict, does not rule out future approval was recovered to the central level of financial regulatory agencies. After all, the appeal for financial development, the central and local governments are not the same, the central authorities pay more attention to risk prevention, while local governments pay more attention to development.
The remediation of online small loans for the cash loan company has a great influence. There are hundreds of cash lending companies in the market with a small number of licensed companies. Most of the companies do not make any advance efforts in the financial licenses. This makes its future development will be very difficult. The central bank has stated that any financial business has a licensed business. Without a license, cash lenders face a one-size-fits-all risk. Without a loan qualification, they can not engage in related businesses. This will make a lot of small and medium-sized platform facing the pressure of the outgoing. Although some non-licensed cash lenders that have some accumulation in terms of data, technology and scale are likely to move to more pure lenders and extend the lending process more to licensed financial institutions.
The rise and fall of small loan companies and small network loans may also trigger regulators' rethink: To develop a financial business or to support the development of a financial sector, our country often approves the establishment of specialized financial institutions to try to achieve this. For policy purposes, such as the development of consumer finance, a consumer finance license has been introduced; the development of rural finance has led to the introduction of a microcredit company. However, the role of small loan companies in rural finance has not yet materialized.
Consumer finance company is also in the big data technology is extensive, mature application, it entered the spring of development. Therefore, it is an idea to support the development of a certain field and set up a special financial institution. However, more importantly, it may be to study the technology, resources, infrastructure and the soil for development in this area through policy support or market instruments.