Several industry sources said that since May, financial regulators in multiple regions have issued window guidance to some small and mid-sized banks and consumer finance companies.
According to Jin10, the guidance requires that the growth rate of outstanding loan balances originated through assisted-lending channels must not exceed the growth rate of loans originated through institutions’ own channels. Regulators also asked institutions to reduce the outstanding balance of existing assisted-lending business on a month-on-month basis and to keep the share of guarantee-type business at no more than 25%.
An analyst cited in the report said the latest guidance not only asks relevant institutions to control incremental growth in assisted lending, but also sets clearer requirements for an orderly contraction of existing business. The analyst added that institutions receiving the guidance may have been slower than expected in cutting assisted-lending balances or may not have met regulators’ expectations.
The analyst said the core aim is to push licensed institutions back toward their intended role, strengthen responsibility for independent risk controls, gradually reduce reliance on external channels, and prevent potential risks at smaller financial institutions that could build up from excessive expansion.
China Regulators Tell Some Smaller Banks to Slow Growth in Assisted Lending, Sources Say
2026-06-25 19:28:31
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