Creating a testing environment for peer-to-peer lending

The State Bank has just issued two decisions to create an environment and testing conditions for peer-to-peer lending solutions.

According to Decision No. 2866/QD-NHNN of the State Bank, the maximum outstanding balance for a customer borrowing from a peer-to-peer lending solution is 100 million VND. At the same time, the limit for the total outstanding balance of customers at all peer-to-peer lending solutions participating in the controlled testing mechanism is 400 million VND.

This regulation aims to ensure a common principle of risk management, consistent with the pilot nature of the testing mechanism, while limiting financial losses for both lenders and borrowers, contributing to the stability of the financial system.

The maximum outstanding balance of a customer at a peer-to-peer lending organization is 100 million VND. Illustrative photo

In addition, the State Bank issued Decision No. 2970/QD-NHNN providing guidance on connecting, reporting and checking customer credit information between peer-to-peer lending companies and the National Credit Information Center of Vietnam (CIC).

This Decision specifies the technical conditions for connection to CIC, the list of indicators, the time limit and frequency of supply, the rights and obligations of companies participating in the testing mechanism when connecting to CIC.

Participating in the credit information system will help peer-to-peer lending companies participating in the pilot mechanism have a basis to manage the maximum outstanding balance of a customer on their platform as well as all platforms according to regulations, and at the same time can have more information about the borrower to provide to the lender (when approved by the borrower according to current law), contributing to improving loan quality.

According to the State Bank, the issuance of the above two decisions affirms the State Bank's readiness to accompany financial technology organizations, promote innovation and financial inclusion in the banking sector in Vietnam, while still ensuring risk control.

These two decisions are an important basis for creating conditions for organizations wishing to register to participate in the pilot mechanism to proactively research, develop, prepare technical conditions and management capacity, and operate safe and effective peer-to-peer lending solutions.

Source: https://hanoimoi.vn/tao-lap-moi-truong-thu-nghiem-cho-vay-ngang-hang-716501.html