China warns un­qual­i­fied mi­crO-len­ders

The Sunday Guardian - - & Comment Analysis - REUTERS

BEI­JING: The Na­tional In­ter­net Finance As­so­ci­a­tion of China is­sued a risk warn­ing let­ter late on Fri­day telling “un­qual­i­fied in­sti­tu­tions” to im­me­di­ately stop of­fer­ing loans as Bei­jing steps up a crack­down on the mi­cro-loan sec­tor to fend off fi­nan­cial risks. The 1 tril­lion yuan ($151.5 bil­lion) short-term, un­se­cured lend­ing sec­tor, known as “cash loan” in China, has been ac­cused of charg­ing ex­or­bi­tant in­ter­est rates and vi­o­lent debt col­lec­tion prac­tices.

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