I. Measures for the Administration of Fixed Asset Loans and Measures for the Administration of Working Capital Loans
The Measures for the Administration of Personal Loans (hereinafter referred to as the "Fixed Loan Measures", "Current Loan Measures" and "Personal Loan Measures" respectively, collectively referred to as the "Three Measures") will come into force on July 1, 2024
Answer: For credit contracts signed before July 1 (including revolving loan contracts that form off-balance sheet "unconditional loan commitments", the same below), if there are differences between the relevant terms and the revised "three measures", such as loan term, entrusted payment method, etc., the original "three measures and one guideline" can still be continued.
2. Does the provisions on loan term in the "Three Measures" refer to the credit term or the credit period?
Answer: The provisions on the term of the loan in Article 9 of the Fixed Loan Measures, Article 11 of the Measures for Circulating Loans, and Article 8 of the Personal Loan Measures refer to the term agreed in the credit contract, not the term in the credit contract or the IOU on a case-by-case basis, nor does it include the term of extension.
3. What is the meaning of "on-site" investigation?
Answer: "on-site" investigation refers to the on-site investigation of the borrower's loan application by the banking financial institution. Banking financial institutions should verify the relevant matters in accordance with the loan management requirements and risk control needs of the institution.
4. How to understand the "combination of on-site and off-site"?
Answer: "The combination of on-site and off-site due diligence" means that the pre-loan investigation method should include both on-site and off-site investigations.
5. How to understand the relevant requirements of the "Three Measures" on misappropriation of funds in post-loan management?
Answer: banking financial institutions should strengthen the management of misappropriation of credit funds within the scope of their maximum monitoring capabilities. In particular, it is strictly necessary to prevent credit funds from being misappropriated to inflate fiscal revenues, increase hidden debts of local governments, invest in financial assets, and flow funds into the real estate market in violation of regulations.
6. What are the requirements for collateral when applying for a mortgage loan?
Answer: When applying for a mortgage loan, the management of collateral should comply with the Civil Code and other laws and regulations, as well as the "Three Measures", the Guidelines for the Management of Collateral of Commercial Banks (Yin Jian Fa [2017] No. 16) and other relevant regulatory requirements. Commercial banks should prudently confirm the eligibility of the collateral and reasonably assess the ownership, value and liquidity of the collateral. For example, whether public assets can be used as collateral should meet the requirements of the relevant industry authorities.
7. How to define the scope of "fixed asset investment" in the Fixed Loan Measures?
Answer: According to Article 3 of the Fixed Loan Measures, all construction, purchase and renovation of fixed assets can be included in the investment in fixed assets. In view of the fact that the Interim Measures for the Administration of Fixed Asset Loans (Decree No. 2 of 2009 of the China Banking Regulatory Commission) were repealed simultaneously when the "Three Measures" came into effect, the Interpretation of the China Banking Regulatory Commission on the Interim Measures for the Administration of Fixed Asset Loans (published in the 28th issue of the Regulatory Work Information of 2010) is no longer valid. The term "fixed assets" in the Fixed Loan Measures refers to fixed assets in a broad sense, and the relevant accounts are not limited to fixed assets in the accounting standards. It can be understood that it covers the statistical subjects of the National Bureau of Statistics on fixed asset investment, and there is no lower limit on the amount. In addition, in practice, the construction and purchase of some small-scale fixed assets, such as the construction of agricultural greenhouses, house decoration, and the purchase of equipment parts, although they are fixed asset investments, in view of their small amount and short term, according to Article 46 of the Loan Measures, for the financing needs related to fixed assets with a loan amount of less than RMB 500,000, they can be implemented with reference to the Measures.
8. Article 12 of the Fixed Loan Measures, which stipulates that "the application for fixed asset loans shall meet the following conditions", stipulates that "the project conforms to the relevant national policies on industry, land, environmental protection, etc., and has fulfilled the legal management procedures for fixed asset investment projects in accordance with the regulations".
Answer: If the fixed asset loan is used to support the national and provincial key project library, it can be used to support the pre-project financing needs after complying with the national project capital regulations, completing the project approval procedures, and obtaining the national industry, environmental protection, planning, construction and land pre-examination management procedures.
9. Do the loans in the Fixed Loan Measures include other forms of credit support such as letters of credit, bank acceptance bills, etc.?
Answer: The form of loan issuance in the Fixed Loan Measures is the issuance of funds, excluding letters of credit, bank acceptance bills, etc.
10. How to understand the "predetermined usable status" in Article 25 of the Fixed Loan Measures?
Answer: The "predetermined usable state" of fixed asset construction should follow the relevant requirements of accounting standards.
11. Does the time limit for entrusted payment stipulated in Article 31 of the Fixed Loan Measures include the same day?
A: The time limit requirement for entrusted payment includes the same day.
12. Article 37 of the Fixed Loan Measures stipulates that if the actual investment of the project exceeds the original investment amount, and the lender decides to make additional loans after re-risk assessment and approval, the project sponsor shall be required to provide additional investment not less than the proportion of the project capital. If the original investment in the project capital ratio is higher than the minimum proportion required by the state, does the lender have to invest no less than the project capital ratio?
Answer: If the proportion of the original investment in the project capital is higher than the minimum proportion stipulated by the state, if the additional loan is required, it is still necessary to ask the project sponsor to support the additional investment that is not lower than the project capital ratio stipulated by the state.
13. How to apply the provisions of the Fixed Loan Measures and other provisions to intangible assets such as intellectual property rights?
Answer: According to Article 57 of the Fixed Loan Measures and Article 45 of the Loan Measures, loans for intellectual property rights such as patents and copyrights, as well as other intangible assets such as mining rights, may be implemented with reference to the Fixed Loan Measures according to the business characteristics and operation mode of the loan project, or the Measures may be applied to the Current Loan Measures. First, banking financial institutions can judge on their own according to the specific situation, and the specific loan business shall refer to the "Fixed Loan Measures" or apply the "Liquid Loan Measures". Second, the loans for intangible assets stipulated in this article can be used for both research and development and direct purchase. Third, the "other intangible assets" in the clause are equal to the other, and all intangible assets that are controllable and meet the relevant requirements can be provided by banking financial institutions to provide loan support.
14. Can the working capital loan be used for the purpose of paying employees' wages, paying taxes, purchasing precious metals, etc.?
Answer: First, the working capital loan can be used to pay employees' wages and social security, but it cannot be used to pay bonuses, dividends and other items. Second, working capital loans can be used for taxes and fees generated by daily operations, but cannot be used to pay fines. Third, if the relevant industry purchases gold, diamonds and other precious metals for production rather than investment, working capital loans can be issued.
15. Article 9 of the Measures stipulates that working capital loans shall not be used for investment in financial assets. How is the scope of financial assets defined?
Answer: The scope of financial assets is controlled in accordance with the financial assets defined in accounting standards.
16. What are the specific contents of "local financial organizations" in Article 9 of the Measures for Circulating Loans?
Answer: Local financial organizations include microfinance companies, financing guarantee companies, pawnshops, financial leasing companies, commercial factoring companies, local asset management companies, and other organizations engaged in financial business that are authorized by the State Council to supervise and manage local people's governments in accordance with the law.
XVII. How to understand Article 16 of the Measures for Circulating Loans, which stipulates that "the lender shall, according to its own risk management capabilities, prudently determine the upper limit of the loan amount that the borrower can simplify or no longer conduct on-site investigation according to the region, industry and variety of working capital loans for small and micro enterprises", and whether it is necessary to clarify the upper limit of the amount for a single enterprise?
Answer: According to the above provisions, banking financial institutions can determine the upper limit of the loan amount that the borrower can simplify or no longer conduct on-site investigation for a certain type of small and micro enterprise according to different dimensions such as region, industry and variety. This provision does not apply to a single enterprise.
18. How to grasp the time limit for entrusted payment of working capital loans?
Answer: The Measures do not set out clear requirements on the time limit for entrusted payment of working capital loans. Banking financial institutions should follow the principle of actual loan and actual payment, and shall not have "loan to deposit" or other violations of relevant regulatory requirements.
19. Should the Measures for Circulating Loans and the Measures for Personal Loans be applied to Internet loans in the Interim Measures for the Administration of Internet Loans by Commercial Banks (Decree No. 9 [2020] of the China Banking and Insurance Regulatory Commission)?
Answer: The Interim Measures for the Administration of Internet Loans by Commercial Banks clearly define Internet loans. Loans that meet the definition of Internet lending shall be subject to the Interim Measures for the Administration of Internet Loans by Commercial Banks. At the same time, in accordance with Article 66 of the Interim Measures for the Administration of Internet Loans of Commercial Banks, matters not covered in these Measures shall be implemented in accordance with the Interim Measures for the Administration of Personal Loans (Decree No. 2 of 2010 of the China Banking Regulatory Commission) and the Interim Measures for the Administration of Working Capital Loans (Decree No. 1 of 2010 of the China Banking Regulatory Commission) and other relevant provisions. Therefore, for matters not stipulated in the Interim Measures for the Administration of Internet Loans by Commercial Banks, the relevant provisions of the Measures for Circulating Loans and the Measures for Personal Loans shall be implemented.
20. The Measures for Circulating Loans and the Measures for Personal Loans stipulate that post-loan on-site inspections shall be carried out in accordance with an appropriate proportion for businesses that simplify or no longer conduct on-site investigations. Is there a further explicit requirement for "appropriate proportions"?
Answer: Banking financial institutions can prudently determine the standard of "appropriate proportion" according to the risk control requirements and the actual management of the loan business.
21. Article 18 of the Personal Loan Measures requires that video interviews should be conducted on the lender's own platform.
Answer: "Self-owned platform" shall be an independent network platform established by banking financial institutions in accordance with the law and enjoying complete data permissions, excluding third-party platforms, other platforms connected with the bank's own platform, and plug-ins attached to third-party platforms. Rural small and medium-sized banks can use the unified platform owned by the provincial association or the platform owned by the main initiating bank.
22. Are there any detailed provisions on the requirement of "establishing and improving a unified credit management system for individual customers" in Article 20 of the Personal Loan Measures?
Answer: The provisions on the unified credit extension of individual customers in the "Personal Loan Measures" are the principle requirements, and all banking financial institutions can establish a unified credit mechanism according to the bank's risk control level and personal loan management.
23. How to understand the manual review provided for in Article 21 of the Personal Loan Measures? Is there a manual review for every loan?
Answer: According to the "Personal Loan Measures", banking financial institutions should establish a manual review mechanism as a supplement to automatic approval, and set the trigger conditions for manual review. Therefore, banking financial institutions should formulate trigger conditions for manual review according to their own risk control requirements, and should transfer to manual review for loan businesses that trigger relevant conditions in automatic approval.
24. How to understand the "face-to-face" signing of contracts in the Personal Loan Measures?
Answer: "Face-to-face" signing of the contract refers to the signing of the loan contract and other documents that need to be signed by both parties at the same time and in the same place at the same time by the staff of the banking financial institution and the borrower. According to the provisions of the Civil Code and the Electronic Signature Law, the form of the contract can be either paper or an electronic document signed through electronic devices such as mobile banking.
25. Are there any relevant regulations for the venue for face-to-face signing?
Answer: There are no restrictions on the "three measures" for the venue for "face-to-face" contracting.
26. What elements should be included in the audio and video recording of face-to-face signing as required in the Personal Loan Measures?
Answer: According to the "Personal Loan Measures", if the contract is signed in person, the process of signing the loan contract should be recorded and videotaped. Banking financial institutions shall, in accordance with the relevant requirements of the Bank's credit management and the needs of credit risk prevention and control, formulate the elements of audio and video recording, including but not limited to verifying the identity of the borrower, asking the borrower whether he understands the important contents of the contract such as the amount, term, interest rate, liability for breach of contract, and the borrower's confirmation feedback and signature.
27. What is the meaning of "e-banking" in Article 26 of the Personal Loan Measures?
A: Regarding the definition and regulatory requirements of "e-banking", the relevant provisions of the Administrative Measures for E-banking Business (Decree No. 5 of 2006 of the China Banking Regulatory Commission) should be followed.
28. Is the Personal Loan Measures applicable to credit card installment?
Answer: According to Article 49 of the Personal Loan Measures, the credit card-related management system shall be applicable to credit card-related business, and the Personal Loan Measures shall not apply.
29. Are the Measures for Personal Loans Applicable to Personal Housing, Personal Student Assistance, Personal Cars, etc.?
Answer: According to Article 49 of the "Personal Loan Measures", if there are other provisions on personal housing loans, personal car loans, personal student loans, etc., such provisions shall prevail. Therefore, if other relevant systems have provisions on the above-mentioned types of loans, those provisions shall prevail. If there are no clear requirements in the relevant system, the relevant requirements of the Personal Loan Measures shall be implemented for commercial student loans; Personal housing, personal cars and national student loans are subject to the interpretation of the lead management department of the relevant system.
30. Article 16 of the Measures for Personal Loans stipulates that loans not exceeding RMB 200,000 may be simplified or no longer subject to on-site investigations, and Article 26 stipulates that loans not exceeding RMB 200,000 may be subject to relevant contracts through electronic banking channels. Does "200,000 yuan" here refer to the amount of the credit contract or the amount of the credit contract?
Answer: "not more than 200,000 yuan" here refers to the amount of the credit contract.
31. How to understand the provisions of Article 16 of the Personal Loan Measures that loans of no more than 200,000 yuan may be simplified or no longer subject to on-site investigations, Article 18 of which provides that interviews with borrowers may be conducted by video, and Article 26 of which stipulates that loans of no more than 200,000 yuan can be contracted through electronic banking channels, all indicate that "loans for personal housing purposes do not include"?
A: "Loans not included for personal housing purposes" means that the above provisions do not apply to personal housing loans. Where the relevant systems for personal housing loans have other provisions, follow those provisions. If there are no relevant provisions, the interpretation of the lead management department of the relevant system shall prevail.
32. Is the "Personal Loan Measures" applicable to personal housing renovation loans?
Answer: Personal consumption loans are divided into personal housing loans and comprehensive consumer loans. Personal housing renovation loans are personal comprehensive consumer loans, and the relevant requirements of the Personal Loan Measures shall be implemented.
33. Is the Measures for Individual Loans Applicable to Rural Households' Consumer Loans?
Answer: The second paragraph of Article 49 of the "Measures for Personal Loans" stipulates that these measures shall not be implemented for the time being when banking financial institutions issue special personal loans to rural households for productive loans, such as special policies and regulations of the state. The "etc" here includes loans issued to rural households for consumption. Therefore, the Measures for Individual Loans are not implemented for consumer loans to rural households. At the same time, the loans issued by banking financial institutions to eligible rural households for production and operation, living consumption and other purposes shall be subject to the "Measures for the Administration of Rural Household Loans" (Yin Jian Fa [2012] No. 50).
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