2020-11-21

Violation of regulations raises comprehensive financing costs for small and micro enterprises China Banking and Insurance Regulatory Commission names relevant institutions

By yqqlm yqqlm

On the 21st, the China Banking and Insurance Regulatory Commission notified some banks and insurance institutions that lending institutions violated regulations to raise the typical problems of the comprehensive financing costs of small and micro enterprises. The Industrial and Commercial Bank of China, Ping An of China and other institutions were named.

According to the relevant work arrangements of the State Council, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission organized a special inspection of small and micro enterprise financing charges, and checked the clues of relevant issues reflected by the public through the State Council’s”Internet + Supervision” platform , The Inspection Office of the General Office of the State Council conducted unannounced visits and inspections on relevant outstanding issues.

Supervision and inspection found that some bancassurance institutions and loan assistance institutions have imposed regulations on the regulations and prohibitions. They illegally collect fees that should be deducted for free, enforce bundled sales, and charge high service fees and Agency fees have increased the overall financing cost and weakened the sense of acquisition of small and micro enterprises.

For example, from January 2017 to October 2019, ICBC Jiangxi Branch, Hebei Branch, Henan Branch, Shanghai Branch, Jiangsu Branch, Sichuan Branch, Guangxi Branch, Liaoning Branch, Shandong Branch and other 9 branches The branch illegally charged 20 small and micro enterprises with loan commitment fees, investment and financing consulting fees and other “two prohibitions and two restrictions” fees of 22.848 million yuan (RMB, the same below).

Minsheng Bank Headquarters Group Finance Department and some branches charge small and micro enterprises loan commitment fees and bank acceptance in violation of regulations”Two prohibitions and two limits” expenses such as the management fee for draft exposure and the commitment fee for overdraft business of legal person accounts. After investigation, from September 2016 to November 2019, Minsheng Bank illegally charged small and micro enterprises with a fee of RMB 43,695,300 for the “two prohibitions and two restrictions”. Minsheng Bank also sells personal accident insurance with higher insurance rates to customers on the premise of existing mortgages, and withdraws high agency fees.

In addition, Ping An Puhui Financing Guarantee Co., Ltd., a subsidiary of Ping An Insurance (Group) Co., Ltd. of China, when cooperating with Industrial Bank to carry out inclusive loan business, forced the sale of loans from Ping An Property Insurance Co., Ltd. Guaranteed insurance does not provide other credit enhancement methods or other insurance company products for customers to choose, which infringes consumers’ right to choose and fair transactions.

The notification emphasized that relevant agencies must strictly implement relevant regulations, and earnestly protect lending companies’ right to know, independent choice, and fair transaction rights. They must not use their dominant market position to impose unreasonable conditions, force bundled sales, pass on costs, and Illegal charges will increase the hidden financing costs of small and micro enterprises in disguise. Regarding ignorance of the prohibition and violations against the wind, the financial regulatory authorities will find out and deal with them together, and will never tolerate them.

Source:China News Network