Published: February 22nd, 2021,
Last updated: May 9th, 2023
China’s banking regulator has imposed new restrictions on banks and financial institutions that deal with online microcredits. This is reported by Bloomberg, which concludes the new regulations would massively restrict the business of Jack Ma’s Ant Group. According to the report, banks that want to work with internet platforms or other partners to make microloans must limit the volume to no more than 50 percent of their outstanding loan limit. Co-lending through a platform should not exceed 25 percent of the bank’s core capital. Ant Group alone is said to have provided consumer loans worth ¥1.7 trillion ($263 billion) to about 500 million people. asi