Ministry of Commerce Brews Internet Finance Enterprises Credit Certificate Standards
Source: View: 247 Date: 2015-11-20

"The Standards” is been brewing by the Ministry of Commerce will create differentiated credit rating ways, such as when adjust whether self-financing exists in internet financial institutions, in the past some rating agencies mainly considered the average profit rate of products from this institution whether can be higher than industrial standards; however, beside “The Standards”, will also intend to introduce some other elements including proportion of uncollected fund from Top 10 borrowers, regional concentration of loan, limitation distribution of investment target, growth speed of uncollected fund to make comprehensive adjustment.

Although internet finance industry has rapid development, because whole industry always lacks of an administrative institution credit rating certification standard, which restrict its health development certainly.

Reporter exclusively achieves information that recently, Chinese Academy of International Trade and Economic Cooperation (referred as to MOFCOM) – the direct institution of the Ministry of Commerce is brewing and formulating “Internet Finance Institution Credit Rating and Certificate Standards” (referred as to “The Standards”), and plans to public take advices from society before the end of 2015, then will formally publish it in 2016. At that time, “The Standards” is expected to become the first “national” standard of internet finance institution credit rating and certificate.

In someone’s opinions, this may be an exploration of relative departments from Ministry of Commerce to promote internet finance health development.

It is worth noticing that on July 18th, The People’s Bank of China joint with Ministry of Industry, Information and Technology, Ministry of Public Security, Ministry of Finance, State Administration for Industry & Commerce, Legislative Affairs Office of the State Council, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission, and Cyberspace Administration of China to publish “The Guidance Opinions on Promoting Internet Finance Health Development” (referred as to “The Guidance Opinions”); however the Ministry of Commerce doesn’t belong to these ten ministries and departments.

"In spite of this, relative departments of Ministry of Commerce are focusing on internet finance industrial development” said by someone who knows something. He also disclosed that the reason of MOFCOM brewing and formulating “The Standards” is to reverse “disorders” of domestic internet finance institution credit rating based on its own operation experiences in enterprise credit rating.

As a governmental department mainly manages business economy and trade in China, credit rating and certificate center belongs to MOFCOM always has responsibility to provide credit rating and certificate service for enterprise institutions.

Reporter verified to Xu Zhou, the expert of research team who formulate “The Standards”; they said that currently relative articles of “The Standards” are in the process of research and verification thus can’t disclose anything further.

Ministry of Commerce Leads to Formulate “The Standards”

In March of 2015, Dagong Global Credit Rating Co.,Ltd. the Rating – rating institution in China suddenly decided to transfer Lufax from warning observation list of internet finance credit to black list that triggered fierce contradiction between Lufax and this credit rating institution.

"This reflects that because domestic internet finance institution credit rating lacks of an administrative standard, some defy spirit exists between internet finance institution and rating institutions.” Someone mentioned above and disclosed this also promotes to formulate “The Standards” in work schedule.

After all, an important work of MOFCOM is to establish enterprise credit system in China and to promote enterprise credit rating and certificate technical operation regulation fitting for China’s market in good time.

Report received information that MOFCOM really begins to launch formulation of “The Standard” course research, after publishing “The Guidance Opinions”.

Some people originally thought internet finance institutions belong to finance institution shall be granted business license by finance regulatory department that shall also set up enterprise credit rating certificate standards. However “The Guidance Opinions” clearly indicates “support credit agent organizations with qualification to launch internet enterprises credit rating, and to strengthen transparency of market information”, which intangibly provides policy operation guidance for MOFCOM to formulate internet finance institution credit rating and “national” certificate standards.

Xu Zhou introduced for reporter that currently, MOFCOM leads to formulate relative articles of “The Standards”; credit rating and certificate center of MOFCOM will mainly operate rating certificate works; the later one has introduced international credit risk management technologies since the year of 1987 and engaged with credit risk management market in China.

"Currently, ‘The Standard’ course team has researched many domestic big internet finance institutions, basically formulated relative articles; in the next will publically take advices from society” said by Xu Zhou. According to schedule from relative departments of Ministry of Commerce, if taking advices from society successfully finishes, departments will optionally promote standard result transferring and enter into real practices.

"Currently, course team intends to design ‘The Standards’ as the first national standard in the aspect of internet finance institutions credit rating and certificate in China” introduced by Xu Zhou. All internet finance enterprises information rated by “The Standards” will be published on internet finance information query system – the third-party cooperation platform that provides query service for internet finance consumers to change information asymmetry and layout of lacking of administrative rating judge standards between investors, internet finance institutions and rating institutions.

"Differences” of Rating Standard 

According to information provided by these people mentioned above, as “national” standard of internet finance institution credit rating and certificate, it strives for “differences” in institution credit rating assessment method.

"Different from some credit rating institutions, mainly according to fiscal data provided by internet finance enterprises themselves to rate, ‘The Standards’ requires internet finance institutions must introduce lawyers and accountants firms in part of fiscal operation information collection, to firstly check reality of fiscal data and other information from institutions, and to ensure accuracy of credit rating data sources.”

In the aspect of credit rating certificate, “The Standards” on one hand continues current internet finance institution rating certificate standard to make certification – from registration capital (contributed capital or equity capital), enterprise scale, establishment time, capital scale, yield rate, overdue rate, to risk control mechanism, rights and interests of investor protection mechanism and employee qualification; on other hand, also creates some diversified credit rating ways, such as when judged one internet finance institution whether exist self-financing behavior, in the past some rating institutions mainly considered whether the average yield rate of products from this institution will be higher than industrial standards or not; however beside “The Standards”, will intend to introduce uncollected funds proportion of Top 10 borrowers, loans regional concentration, limitation distribution of investment target, growth rate of uncollected funds and other elements to make comprehensive judgment.

"Currently, course team is further studying proportion of each element in credit rating system, will make them perfect and achieve final result soon” said by Xuzhou. He also emphasized that different from traditional credit rating, it mainly credits reporting via fiscal data and debt paying ability, “The Standard” will also provide a relatively administrative rating standard mainly focusing on investigation for real operation ability of internet finance institution, risk control level and rights & interests of investors’ protection mechanism.

According to understand of reporter, “The Standard” formulation course team is also willing to attract employees of internet finance institutions, investors to feedback the first operation situation of enterprises via encouragement and awards.

In Xu Zhou’s opinions, these employees and investors can understand product default situation of internet finance institutions at the first time that can help relative departments of Ministry of Commerce to adjust credit rating of these institutions real-time, and to avoid influences from rating adjustment lag.

"According to imagine from standard course team, the first obligation of ‘The Standards’ is to filter internet finance institutions which have fraud operation behaviors and avoid cheating investors; let investors more fully understand operation risk of internet finance institutions and avoid investment trap via establishing different credit rating scores” said by these people mentioned above.

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