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China cracks down on online micro-lending firms

Companies providing micro-loans have expanded rapidly in the past year, partly due to loose government

Reuters  |  Beijing 

China’s financial regulators have circulated new rules to local governments targeting fast-growing online micro-lenders, part of a campaign to rein in a rapidly developing financial sector. Under the new rules, unlicenced organisations and individuals are not allowed to conduct a lending business, according to the notice. Lending institutions are also not allowed to give loans to borrowers who have no source of income or to mislead consumers into over-borrowing, according to the notice. The rules were devised by a multi-ministry body, tasked by the central government ...

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First Published: Sun, December 03 2017. 00:35 IST