China Banking and Insurance Regulatory Commission： It is proposed that the term of personal consumption loans shall not exceed 5 years.

　　CCTV News:According to the website of China Banking and Insurance Regulatory Commission, in order to further promote banking financial institutions to improve their credit management capabilities and financial service efficiency and support financial services to the real economy, China Banking and Insurance Regulatory Commission, China revised the credit management systems such as Interim Measures for the Management of Fixed Assets Loans, Interim Measures for the Management of Working Capital Loans, Interim Measures for the Management of Personal Loans and Guidelines for Project Financing (hereinafter referred to as "Three Measures and One Guidance"). The Measures for the Management of Fixed Assets Loans (Draft for Comment), the Measures for the Management of Working Capital Loans (Draft for Comment), the Measures for the Management of Personal Loans (Draft for Comment) and the Provisions for the Management of Project Financing Business (Draft for Comment) were formed, which were open to the public for comments, and the heads of relevant departments answered questions from reporters on the above systems.

　　1. What is the background of the revision of "three methods and one guideline"?

　　The implementation of "three methods and one guideline" for more than ten years has played an active role in improving the standardization and refinement of loan management of commercial banks, preventing and controlling credit risks and serving the real economy. In recent years, with the sustained development of China’s economy and society, new requirements have been put forward for financial services to the real economy, and some provisions in the "three methods and one guide" have also shown certain limitations and lag, which need to be updated and adjusted to better adapt to the current development trend of credit business. China Banking and Insurance Regulatory Commission revised the "three methods and one guideline" and the main problems existing in the implementation of related policies, which is conducive to further promoting banking financial institutions to improve their credit management capabilities and financial service efficiency and better serve the real economy.

　　2. What are the principles of this revision?

　　This revision follows the principles of problem-oriented, advancing with the times and risk-oriented. Focusing on improving the quality and efficiency of serving the real economy, focusing on effectively preventing and controlling financial risks, we will study and solve relevant problems that are more urgent in the market, and actively adjust the applicability and effectiveness of policies according to the new situation and changes in market development. At the same time, pay attention to scientifically grasping the pace of policy adjustment, strengthen the risk control mechanism, adhere to the requirements of prudence, and strike a balance between steady growth and risk prevention.

　　3. What are the main contents of this revision?

　　First, according to the actual credit business, moderately broaden the use and scope of working capital loans and fixed assets loans. The second is to further clarify the entrusted payment standards of different types of loans, optimize the management requirements of entrusted payment, and improve the effectiveness of entrusted payment execution. Third, according to new business scenarios, adjust business handling methods, support the application of big data and off-site technologies, and carry out loan investigation and management. Among them, for the working capital loans handled by small and micro enterprises, the on-site investigation can be simplified or stopped if it meets the relevant regulatory requirements. The above-mentioned small and micro enterprises include small and micro enterprises that obtain loan financing through supply chain finance business. Fourth, improve the flexibility and convenience of loan processing, further optimize the calculation requirements of working capital loans, and increase the credit method to handle the related contents of fixed assets loans, so as to better meet the financing reality. The fifth is to clarify the loan term requirements, guide commercial banks to effectively prevent the risk of loan term mismatch and optimize the loan structure. Sixth, integrate other relevant credit management systems to improve the system’s systematicness.

　　IV. What adjustments have been made to the scope of loan use and loan object in this revision?

　　The Measures for the Administration of Fixed Assets Loans (Draft for Comment) clarifies that fixed assets loans refer to local and foreign currency loans issued by legal persons or unincorporated organizations for borrowers’ fixed assets investment. Investment in fixed assets refers to the construction, purchase and transformation of fixed assets by borrowers in the course of business. At the same time, loans for intellectual property research and development projects such as patent rights can be implemented with reference to these measures.

　　The Measures for the Administration of Working Capital Loans (Draft for Comment) clarifies that working capital loans refer to local and foreign currency loans issued by lenders to legal or non-legal organizations for the daily operation and turnover of borrowers. Working capital loans shall not be used for shareholders’ dividends, financial assets, fixed assets, equity and other investments, and shall not be used in fields and uses prohibited by the state from production and operation.

　　V. What adjustments have been made to the relevant requirements for entrusted payment of loans in this revision?

　　For fixed assets loans, if it is clear that the single payment amount to a transaction object of the borrower exceeds RMB 5 million, the entrusted payment method should be adopted, and the time limit for entrusted payment should be relaxed to ten days under relevant special circumstances. For working capital loans, if the payment object is specified clearly and the single payment amount to a transaction object of the borrower exceeds 10 million yuan, the entrusted payment method should be adopted. In the case of the borrower’s emergency use of funds, the lender is allowed to appropriately simplify the materials and procedures for pre-certification of entrusted payment and review them afterwards. For personal loans, personal consumption loans with a single withdrawal amount of more than 300,000 yuan, and personal business loans with a single withdrawal amount of more than 500,000 yuan, the entrusted payment method should be adopted.

　　Commercial banks may, according to the needs of risk control, set stricter standards on the basis of the relevant standards for entrusted payment. The entrusted and independent payment accounts in the regulations are all bank accounts.

　　VI. What are the requirements for the prevention and control of misappropriation of loan funds in this revision?

　　First, the lender should agree with the borrower in the contract that the borrower should bear the liability for breach of contract when the borrower fails to use the loan according to the agreed purpose, such as personal business loan being misappropriated in the real estate field, and the measures that the lender can take to recover the loan in advance, adjust the loan payment method, reduce the credit line, stop or suspend the loan issuance, and investigate the corresponding legal responsibilities. Second, lenders should improve the payment control system of loan funds, strengthen the application of financial technology, and effectively supervise the use of loan funds according to the agreed purposes. If it is found that the borrower misappropriates the loan funds, it shall take corresponding measures to control it in accordance with the contract.

　　7. What are the clear provisions on the loan term in this revision?

　　In order to fill the gap in the system of loan term, effectively prevent the risks caused by the mismatch of loan term and further optimize the loan structure, this revision makes it clear that the term of working capital loan shall not exceed 3 years. In principle, the loan period of fixed assets shall not exceed 10 years. If the loan period exceeds 10 years, the head office shall be responsible for examination and approval, and the banks whose business scope is nationwide may authorize tier-one branches for examination and approval. The term of personal consumption loans shall not exceed 5 years, the term of personal business loans shall generally not exceed 5 years, and the longest recovery period of business cash flow corresponding to the loan purpose shall not exceed 10 years.

　　Where the relevant state departments have other provisions on the loan term of real estate loans, individual housing loans and individual student loans, the relevant provisions shall continue to be implemented.

　　8. What adjustments have been made to the calculation requirements of working capital loans in this revision?

　　Considering that different types of working capital borrowers are quite different and their actual needs are different, this revision pays more attention to the flexibility of working capital loans and supports commercial banks to actively play their subjective initiative. The Measures for the Administration of Working Capital Loans (Draft for Comment) clearly states that the lender should calculate the working capital demand of the borrower according to its business scale, business characteristics, accounts receivable, inventory, accounts payable, capital cycle and other factors, and an example of calculation method is attached for reference. At the same time, the provisions that "lenders should formulate effective calculation methods for different types of borrowers according to actual needs" and "for small and micro enterprise borrowers, lenders can analyze and judge borrowers’ working capital needs by other means" have been added.

　　9. Does the "written form" stipulated in the relevant provisions of "Three Measures and One Guidance" refer to the paper version?

　　According to Article 469 of the Civil Code of People’s Republic of China (PRC), a qualified "data message" is regarded as a written form. The relevant requirements of "three methods and one provision" on "written form" shall comply with the provisions of the Civil Code of People’s Republic of China (PRC).

　　X. How to apply the relevant provisions of the Measures for the Administration of Working Capital Loans (Draft for Comment) and the Measures for the Administration of Personal Loans (Draft for Comment) in handling Internet loans?

　　According to the provisions of Article 45 of the Measures for the Administration of Working Capital Loans (Draft for Comment) and Article 48 of the Measures for the Administration of Personal Loans (Draft for Comment), the working capital loans and personal loans that meet the relevant provisions of the Interim Measures for the Administration of Internet Loans of Commercial Banks shall be handled. If there are other provisions in the Interim Measures for the Administration of Internet Loans of Commercial Banks, those provisions shall prevail.