10 June 12, the Beijing Banking Insurance Regulatory Bureau issued the Notice on Regulating the Cooperative Business between Banks and Financial Technology Companies and Internet Insurance Business to standardize the cooperative business between banks and financial technology companies in Beijing.

The circular stressed the need to strengthen the compliance review of capital utilization, requiring banks to strictly check the compliance of capital utilization in accordance with the penetration principle to prevent credit funds from illegally flowing into prohibited areas such as peer-to-peer lending platforms and real estate markets.

Specifically, if independent payment is adopted, it should be agreed with the borrower in the loan contract in advance, requiring the borrower to report or inform the lender of the payment of loan funds on a regular basis. Check whether the loan is used according to the agreed purpose through account analysis, voucher inspection or on-site investigation. After the loan is issued, effective ways should be taken to track, check, monitor and analyze the use of loan funds.