Home » State Administration of Financial Supervision: Implement regulatory ratings for auto finance companies – Finance – China Industry Network

State Administration of Financial Supervision: Implement regulatory ratings for auto finance companies – Finance – China Industry Network

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State Administration of Financial Supervision Implements Regulatory Ratings for Auto Finance Companies

Today, the State Administration of Financial Supervision announced the release and implementation of the “Measures for the Supervision and Rating of Auto Finance Companies.” This new method aims to regulate auto finance companies by establishing six rating factors, including corporate governance, capital management, risk management, professional service capabilities, consumer rights protection, and information technology management.

The regulatory rating results are divided into levels 1-5 and S-level, ranging from excellent to poor. According to the administration, the larger the value of the regulatory rating result, the greater the risk of the institution, requiring a higher degree of regulatory attention. Additionally, automobile finance companies undergoing restructuring, takeover, or market withdrawal will be immediately classified as S-level after being identified by the regulatory agency and will not participate in the regulatory rating for that year.

An official from the State Administration of Financial Supervision and Administration stated that the rating content reflects the latest regulatory requirements and incorporates relevant regulatory requirements to effectively control external business risks for auto finance companies with greater risks. The rating content also reflects the industry’s characteristics, with a specific focus on the “professional service capability” rating element, designed to strengthen the professional capability building of auto finance companies and guide them to focus on serving the auto industry and auto consumption.

Overall, the implementation of this new method is intended to enhance professional financial service capabilities and meet the diversified financial service needs of residents for car purchase and consumption, ultimately expanding domestic demand.

See also  Pan Shiyi’s seven companies have been fined more than 80 million in total | SOHO China | Epoch Times

This is CCTV reporter Wang Lei reporting.

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