China's National Administration of Financial Regulation (NAFR) announced new measures on Friday aimed at stimulating consumption by optimizing consumer finance products, services, and market environment.
The NAFR issued a notice urging financial institutions to tailor products for emerging consumption trends, such as digital, green, and smart consumption scenarios, catering to diverse and personalized financial needs. Increased lending to sectors like retail, hospitality, tourism, education, healthcare, and senior care is also a key focus.
Banks are encouraged to expand personal consumption loans while ensuring risk remains manageable. This includes setting reasonable loan amounts, terms, and interest rates, as well as optimizing resource allocation. The NAFR also aims to explore online processes for opening and activating credit cards, provided that identity verification and risk assessments are effectively conducted.
To further support consumers facing temporary financial difficulties, banks are authorized to negotiate the repayment terms and frequency based on borrowers' credit histories and repayment capabilities. Qualified borrowers may also receive support for loan renewals following a thorough review process.
In its efforts to create a more transparent consumer finance environment, the NAFR has instructed financial institutions to standardize loan contracts by clearly disclosing the total financing costs. Furthermore, the agency plans to intensify joint enforcement actions against practices that disrupt market order or infringe upon consumer rights.
China's finance regulator unveils new measures to boost consumption
China financial regulator unveils new measures to boost consumption
