China Tightens Oversight of Consumer Finance Firms With Scoring
- New system categorizes firms into five levels based on risks
- New rules come as Ant Group forms consumer finance unit
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China’s banking regulator is strengthening oversight of consumer finance firms with a new annual scoring system, continuing to step up scrutiny as the likes of Ant Group Co. are setting up new units in the industry.
The firms will be scored on how well they manage their corporate governance, risk, capital and information technology, divided into five groups of different levels of oversight, the China Banking and Insurance Regulatory Commission said in a statement on its website on Wednesday. The new rules take effect immediately.