Consumer finance company administrative rules on pilot

    (July 22, 2009 Chinese Banking Regulatory Commission announced come into force on the date of promulgation, 2009 3rd) Chapter I General provisions

    First for the development of consumer finance, regulate non-bank financial institutions engaged in consumer finance business, according to the People's Republic of China Banking Regulatory Act and the People's Republic of China company law and other laws and regulations, these measures are formulated.

    Article consumer finance companies mentioned in these measures refers to by the China Banking Regulatory Commission (hereinafter referred to as the CBRC) approved, in the People's Republic of China territory, does not take deposits from the public and to the principle of small, decentralized, for Chinese residents to provide consumer loans for the purpose of the non-bank financial institutions. Third, in the name of a consumer financial company shall be marked "consumer finance".

    Without the approval of the CBRC, no unit may not be used in the name of "consumer finance".

    Fourth the CBRC and its local authority shall supervise and administer the consumer finance company and its business activities.

    Chapter II establishment, modification and termination

    Fifth application for establishment of a consumer financial company shall satisfy the following conditions:

    (A) is consistent with the People's Republic of China company law and the articles of association provisions of the CBRC;

    (B) meet the requirements of investors;

    (C) comply with the minimum amount of registered capital as provided herein;

    (D) meet the qualifications of Directors and senior managers and qualified staff familiar with consumer finance business;

    (E) has a sound corporate governance, internal controls, operational and risk management systems;

    (F) operating in conformity with business premises, safety measures and other facilities;

    (VII) other prudent requirements as specified by the CBRC.

    Sixth consumer financial companies inside and outside the main contributor for financial institutions and other contributors approved by the CBRC, and should meet the following conditions:

    (A) with 5 years experience of working in the field of consumer finance;

    (B) the recent year-end total assets of not less than 1 year of 60 billion yuan or an equivalent amount in convertible currencies (on consolidated accounting statement basis);

    (C) a healthy financial position, the last 2 consecutive profit in the fiscal year (on consolidated accounting statement basis);

    (D) in good standing, no major violation records in the last 2 years;

    (E) the true legitimate sources of stakes, no loan capital shares, shall not be entrusted funds may invest as shares;

    (Vi) promised not to transfer in 3 years the consumption of financial company shares (except according to law to order the transfer of the CBRC), and set out in the proposed articles of Association;

    (G) having a sound corporate governance structure, internal control mechanisms and risk management systems;

    (H) complies with the relevant regulatory requirements;

    (I) the foreign financial institutions should set up a representative office in China for more than 2 years, or have set up branches, has complete confidence in China's market analysis and research, and the country financial supervision authority has with the CBRC to establish good cooperation on supervision and management mechanism;

    (J) other prudent requirements as specified by the CBRC.

    Seventh article consumption financial company of General funded people except should has this approach sixth article subsection (three), and (four), and (five), and (six), and (seven), and (eight), and (nine) items provides of conditions outside, financial institutions also should has registered capital not below 300 million Yuan Yuan or equivalent of can free exchange currency of conditions, non-financial institutions also should has net worth rate not below 30% of conditions.

    Eighth of a consumer financial company registered capital shall be a one-time paid-up monetary capital, minimum amount of RMB 300 million or its equivalent in a convertible currency.

    CBRC according to consumer finance business song development and prudential needs, you can adjust the minimum amount of the registered capital. Nineth needs of a consumer financial company based on business development, approved by the China Banking Regulatory Commission, may establish branches.

    Establishment of branches of the specific criteria formulated by the CBRC separately.

    Without the approval of the CBRC, a consumer financial company shall not operate outside the administrative area in which the registration.

    Tenth of China Banking Regulatory Commission on consumer financial company directors and senior managers implement the qualification approval system.

    11th a consumer financial company shall have one of the following changes, shall be submitted to the approval of the CBRC:

    (A) the change of the company name;

    (B) changing registered capital;

    (C) change of ownership or change of equity structure;

    (D) change of residence or place of business of the company;

    (E) amend the company's articles;

    (F) change of Directors and senior management personnel;

    (G) change of business scope;

    (H) the change of organizational structure;

    (IX) the merger or Division;

    (J) other changes that require the approval of the CBRC.

    12th a consumer financial company shall have one of the following conditions, may be dissolved upon approval of the CBRC:

    (A) the company operating period as prescribed by the articles expires or as specified in the articles of other causes for dissolution occurs;

    (B) the authority provided in its resolution to dissolve the company's articles;

    (C) due to a merger or Division to be dissolved;

    (D) other legal cause.

    13th consumer financial companies because of dissolution, closure or bankruptcy, shall be terminated, its liquidation, in accordance with the relevant State laws and regulations.

    14th a consumer financial company establishment, modification, termination and qualifications of Directors and senior management approved the administrative licensing procedures, in accordance with the relevant provisions of the CBRC.

    15th a consumer financial company set up, change and businesses involved in foreign exchange management should comply with the relevant regulations of the State administration of foreign exchange.

    Chapter III business scope and operating period measurement

    16th upon approval of the CBRC, a consumer financial company to operate renminbi business partly or all of the following:

    (A) loan for personal consumer durables;

    (B) loan for personal consumption for general purposes;

    (C) apply for credit asset transfer;

    (D) interbank lending in the territory;

    (E) loans to domestic financial institutions;

    (Vi) issuance of financial bonds upon approval;

    (G) related to consumer finance and consulting, agency business;

    (H) sales and consumer credit-related insurance products;

    (I) the fixed-income securities investment business;

    (J) other businesses approved by the CBRC.

    17th a consumer financial company to had the company applied for durable goods loans and have good payment records borrowers loans for personal consumption for general purposes.

    18th a consumer financial company issued to an individual consumer loan balances shall not exceed 5 times the borrower's monthly income.

    Supervision and administration of the fourth chapter

    19th a consumer financial company shall, in accordance with the relevant provisions of the CBRC, establish a sound corporate governance structure and internal control system, development of business rules, to establish comprehensive and effective risk management system.

    20th a consumer financial company shall comply with the following regulatory requirements:

    (A) the capital adequacy ratio of not less than 10%;

    (B) the Inter-Bank Fund proportion is higher than the total assets of 100%;

    (C) asset loss reserve adequacy ratio not less than 100%;

    (D) not higher than 20% of total capital investment balances.

    Index calculation method in accordance with the CBRC about off-site supervision index system of reporting requirements. 21st a consumer financial company shall be established in accordance with the relevant provisions of prudential's asset value reduction preparation system, timely and full provision for impairment of assets.

    Was not fully prepared, not for profit distribution.

    22nd a consumer financial company shall establish a consumer loan interest rate risk pricing mechanism, according to the cost of funds, risk, cost, return on capital requirements and market prices and other factors, within the scope allowed by laws and regulations, developing consumer loan interest rates to ensure pricing can cover risks.

    23rd a consumer financial company shall establish an effective risk management system and reliable business processes, to identify false application information and to prevent fraud.

    24th a consumer financial company may be outsourcing needs, should develop policies associated with outsourcing and management systems, including the outsourcing decision-making process, outside of those providing evaluation and management, control, business information confidentiality and security measures and emergency plans.

    Outsourcing agreement signed before a consumer financial company shall report to the CBRC outsourcing agreement the main risks and the corresponding risk mitigation measures.

    A consumer financial company shall not loan decisions and control the core technology is closely related to outsourcing.

    25th a consumer financial company shall, mutatis mutandis, the relevant provisions of the information disclosure of commercial banks ways to establish an information disclosure system, timely disclosure of corporate financial reporting, risk management, corporate governance and annual highlights and other information.

    26th a consumer financial company shall prepare and submit to the CBRC accounting statements and other reports required by the CBRC.

    27th a consumer financial company shall establish a system of external audit on a regular basis, and within 4 months after the end of each fiscal year, will be confirmed by the signature of the legal representative's annual audit report submitted to the CBRC.

    28th a consumer financial company shall be subject to supervision and inspection in accordance with law, the CBRC shall not refuse or block.

    CBRC required for accounting firms can be specified for a consumer financial company's operating status, financial status, risk status, internal control system and the implementation of audits.

    29th a consumer financial company shall keep strictly confidential all personal information provided by the borrower obligations, should not be foreign disclosure.

    30th the borrower does not repay the principal and interest as contracted, a consumer financial company shall take legitimate measures to collect, shall not use threats, intimidation, harassment or other improper means.

    31st a consumer financial company shall violate the provisions of these measures, the CBRC may order rectification; overdue rectification, or their actions seriously endanger the stability of the consumer financial company run, clients ' lawful rights and interests, CBRC distinguishing cases in accordance with the People's Republic of China banking regulatory provisions of the Act and other laws and regulations, to suspend operations, restrict shareholder rights and other regulatory measures. 32nd consumer financial companies have or may happen and seriously affect the customer the legitimate rights and interests of the credit crisis, banking regulators can legally take over or promote restructuring.

    Consumer finance company law business, poor management, where no revocation would seriously jeopardize the financial order, injurious to the public interest, the CBRC has the right to be withdrawn.

    The fifth chapter supplementary articles The 33rd article of the way to the sixth largest investor referred to in article refers to the investor with registered capital of no less than the proposed consumer finance company 50% of the people.

    Seventh General investor referred to in article refers to other contributors except the main contributor.

    34th article of the way 16th referred to personal consumer durables loans was a consumer financial company through the agreed upon in the distributors to borrowers for the purchase of household appliances, electronic products and other durable goods (excluding home and car) loans.

    35th article of the article 16th, 17th called general purpose of individual consumption loans was a consumer financial company directly to borrowers for individual and family tourism, wedding, education loans, decoration and other consumer matters.

    The 36th Hong Kong, Macao and Taiwan funded the establishment of a consumer financial company in the area of the conditions for overseas investors.

    In the 37th article of the approach "above" all contain the number or level.

    38th article of the approach by the banking regulator is responsible for the interpretation. 39th these measures come into force on the date of promulgation.