China Regulator Seeks to Tighten Rules on Banks’ Online Lending

China’s banking regulator is seeking public opinion on a new guideline for banks’ Internet loans, a move to tighten scrutiny of the segment by improving risk management and enhancing consumer protection.

Consumer loan credit should be capped at 200,000 yuan ($28,272) per borrower, the China Banking and Insurance Regulatory Commission said on its website Saturday. For loans where the principal is repaid all at once when the loan comes due, the credit period shouldn’t exceed one year, the commission said.