Business
22:33, 05-Aug-2017
Chinese central bank to include Internet finance into assessment system
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China will explore methods to include large Internet financial businesses of systemic importance in its macro prudential assessment (MPA), said a regional finance development report China’s central bank issued late Friday.
The central bank will improve its supervisory system and strengthen regulation of Internet businesses, let industry and local associations play a bigger role in supervision, and promote new technology, according to the report.
Development of Internet finance has helped broaden the financial reach, improved efficiency of financial services, given people more investment options, and helped some small businesses get badly needed loans.
The first peer-to-peer (P2P) lending platform in China opened in 2007, and exploded in popularity, with the number of such platforms increasing 18-fold between 2012 and 2015 and the combined transaction volume jumping about 40 times over the period, according to the State Information Center.
On top of P2P lending, Internet finance also covers business such as third-party online payments, crowd funding and other financial services. As a result, risk in the Internet finance industry has wide repercussions.
The risks contained in Internet finance sector includes operation without essential licenses, lack of risk control and short of order in competition, the report said, noting some Internet finance products have been systemically important and potential risk spreading should be under watch and prevented.
(Source: Xinhua)