The loan was ordered by the bank to repay 200,000 yuan in one month

Around the eleventh day, the stock market was on the rise, which made many investors start to think about "taking loans to enter the market". However, a notice issued by a joint-stock bank to investors who have borrowed money into the market has recently been circulated on the Internet, requiring the relevant lenders to repay all the funds within one month.

The bank did not respond at the time of writing. The bank's credit account manager told the Shell financial reporter that the recent post-loan inspection of funds entering the market is indeed very strict.

This is in response to the guidance issued by the previous regulator on "strictly prohibiting bank credit funds from entering the market". A few days ago, the financial management department has issued window guidance to commercial banks, requiring financial institutions to attach great importance to investor suitability management and investor protection, strengthen internal control and compliance management, and strictly control leverage. Since October, a number of banks have reiterated that they are strictly prohibiting the flow of credit funds into the housing market, stock market and other fields, and stressed that once illegal misappropriation is discovered, banks will withdraw loans in advance.

Loan entrants are required to repay consumer credit in advance and become the "hardest hit area" for entering the market

Recently, some Shanghai investors posted screenshots of bank credit funds being withdrawn by banks in advance. According to the screenshot, the investor borrowed 200,000 yuan from the bank for a consumer loan, but was ordered by the bank to repay all the funds within one month because his credit funds were "suspected of entering the market".

The screenshot shows that the investor passed the bank's review and received the bank's payment on September 27 this year, and the investor was found by the bank on the same day.

"Recently, banks have indeed stepped up post-loan management of credit funds. If the loan is found to be problematic, the funds will be recovered. A credit manager of the bank told the Shell financial reporter that consumer credit loans are the "hardest hit area" for credit funds to enter the market, mainly because these funds are approved quickly, and the funds are directly into the borrower's card.

The credit manager said that if this kind of consumer credit loan customer submits an application online, if it can conceal its true use, the bank will not be easy to detect before the loan, but the bank will remind the credit funds before the loan can not enter the area, such as not flowing into the stock market and the property market. Therefore, banks can only strengthen post-loan management to avoid the problem of funds entering the stock market.

According to the Shell financial reporter, since the stock market exploded at the end of September, bank consumer loans have also risen. A bank insider in East China told the Shell Finance reporter that the amount of bank consumer loan credit loans has increased.

"In the current hot environment of the capital market, financial institutions will indeed pay more attention to internal control and compliance management." The above-mentioned bank insiders in East China said that for example, they will increase telephone return visits and verify the verification of post-loan use vouchers to monitor the flow of funds.

There are many harms in the market of loans, and it is not empty talk to strictly prohibit credit funds from entering the market

The reason why banks attach so much importance to the issue of credit funds entering the market is because it is more harmful, and for investors, lending into the market means increasing leverage, which also amplifies the volatility of the stock market and increases investment risks. At the same time, investors are also facing direct recovery of funds by banks when they enter the market, which also increases the uncertainty of investors' investment.

In this bull market, there have been some losses for investors who have taken out loans. A Guangdong investor with the online name "Xiaolu" told the Shell Finance reporter that he recently suffered a relatively large loss as a result of taking out loans to speculate in stocks.

After seeing the news of the 1,000-share limit on September 30, "Xiaolu" decisively took out a loan of 100,000 yuan to speculate in stocks. But he chose to buy Chinalco on October 8, but it was already a high point when he entered, and he lost 10,000 yuan on the same day. Although it has rebounded in the past two days, it is still a loss overall. At the same time, he needs to repay a loan of more than 8,000 yuan per month.

"The hotter the stock market, the more investors need to remain calm and rational." Liao Zhiming, chief analyst of the banking industry at China Merchants Securities, said that investors need to choose investment varieties based on their own risk tolerance. The stock market is completely different from the risk level of investment deposits and bank wealth management, and because the stock market is highly volatile, it is not recommended that all investors blindly follow the trend into the stock market.

In addition, Dong Ximiao, chief researcher of Zhaolian, said that the credit funds were not used according to the purpose agreed in the contract and were misappropriated to the stock market and property market, which is a violation or even an illegal act. For financial institutions, after the misappropriation of funds, post-loan management becomes more difficult, and credit risk may increase.

"For the stock market and property market, the rapid entry and exit of illegal funds may increase market volatility and is not conducive to the sustainable and healthy development of the market." Dong Ximiao said that if the credit funds used to support key areas and weak are misappropriated, it will also affect the effectiveness of monetary and credit policies, which is not conducive to economic recovery.

The flow of credit funds to the stock market has been repeatedly banned, and experts suggest that a blacklist system can be established in due course

Credit inflows into the stock market are nothing new, and have been similar in the past when sentiment has been high. Although banks have stepped up post-loan management and regulators have stepped up supervision of banks, this problem has persisted.

"Preventing personal consumption loans from flowing into the stock market in violation of regulations is a compliance problem faced by banks and consumer finance companies alike." Some banking insiders in East China said that borrowers may evade supervision through some means, which makes it more difficult for banks to manage post-loans.

The banker said that the bank's current measures to prevent credit funds from entering the market are mainly to include the requirement to strictly prohibit personal consumption loans from flowing into the stock market in violation of regulations into the loan contract. At the same time, strengthen compliance publicity, especially at the payment stage. Banks will also use big data and artificial intelligence technology to improve the timeliness and accuracy of risk identification.

With regard to the issue of the flow of credit funds to the stock market, Dong Ximiao believes that while recovering some of the funds that violate the rules, financial institutions can further adopt a variety of measures to strengthen the management of the use and flow of credit funds.

"Banks can strengthen the prevention and control of misappropriation of loan funds. If the borrower fails to use the loan according to the agreed purpose, such as using personal consumption loans and operating loans to invest in stocks and real estate, the borrower shall cooperate with relevant departments to investigate the corresponding legal liability. Dong Ximiao suggested that for financial institutions, the monitoring of the flow and use of credit funds is a "big and difficult" problem. Therefore, it is necessary to strengthen the establishment of the social credit system, include the fictitious use of loans and misappropriation of credit funds into the credit reporting system, increase the cost of borrowers' violations, and curb the illegal flow of personal consumption credit funds into the property market and stock market from the source.

In addition, Dong Ximiao also suggested that financial institutions can establish gray lists, blacklists and other systems in a timely manner. At the same time, the financial regulatory authorities should take the lead in establishing a monitoring platform for the use and flow of funds for the entire banking industry, guide the use of credit funds in accordance with laws and regulations, and better promote finance to play an important role in serving the real economy.