China's central bank overseeing loans offered on the Internet

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Amid growing concerns over rapid growth in the lightly regulated industry, China is stepping up its oversight of cash loans offered through the Internet, central bank governor Zhou Xiaochuan announced at a Washington conference, Caixin reports on Saturday.

According to Caixin, Ji Zhihong of the central bank’s financial markets department says it has developed a special regulation for controlling online financial risk with other authorities.

According to Caixin, Ji told a seminar that the regulation has already achieved some success.

Chinese central bank governor Zhou Xiaochuan /VCG Photo

Caixin also quoted Ji as saying China will improve regulations for all online financing businesses, and all financing activities should be subject to a basic level of oversight.

China’s fast-growing online micro-credit firms have been accused of taking advantage of regulatory loopholes to charge excessively high interest rates.

Securities Times, a state-backed media, said earlier this month that new rules could emerge within six months to tighten controls on online microcredit firms.

This year the People’s Bank of China has added wealth management products to its regulatory oversight as it seeks to contain risks to the financial system.

(With inputs from Reuters and Caixin)

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