The regulatory authorities for Internet finance include the “One Bank and Two Commissions”, namely the People’s Bank of China, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission.

The People's Bank of China (PBOC in English), referred to as the central bank, is the central bank of the People's Republic of China and a department of the State Council of the People's Republic of China. Under the leadership of the State Council, it formulates and implements monetary policies, prevents and resolves financial risks, and maintains financial stability.

The China Securities Regulatory Commission is a ministerial-level institution directly under the State Council. In accordance with laws, regulations and authorization from the State Council, it uniformly supervises and manages the national securities and futures markets, maintains the order of the securities and futures markets, and ensures their legal operation.

The China Banking and Insurance Regulatory Commission (referred to as: China Banking and Insurance Regulatory Commission or China Banking and Insurance Regulatory Commission) was established in 2018. It is an institution directly under the State Council. Its main responsibility is to uniformly supervise and manage the banking and insurance industries in accordance with laws and regulations. Maintain the legal and stable operation of the banking and insurance industries, prevent and resolve financial risks, protect the legitimate rights and interests of financial consumers, and maintain financial stability.

The China Banking and Insurance Regulatory Commission is an institution directly under the State Council and is at the ministerial level.

Extended information:

The main features of Internet finance:

1. Low cost:

Under the Internet finance model, both the supply and demand sides of funds Information screening, matching, pricing and transactions can be completed through the online platform without traditional intermediaries, transaction costs and monopoly profits.

On the one hand, financial institutions can avoid the capital investment and operating costs of opening business outlets; on the other hand, consumers can quickly find financial products that suit them on an open and transparent platform, weakening information asymmetry. degree, saving time and effort.

2. High efficiency:

Internet financial services are mainly processed by computers, and the operating procedures are completely standardized. Customers do not need to wait in line, the business processing speed is faster, and the user experience is better.

For example, Alibaba Small Loan relies on the credit database accumulated by e-commerce. After data mining and analysis, it introduces risk analysis and credit investigation models. It only takes a few seconds for merchants to apply for a loan and issue it, and the loan can be completed on average every day. 10,000 transactions, becoming a real “credit factory”.

3. Wide coverage:

Under the Internet financial model, customers can break through time and geographical constraints and find the financial resources they need on the Internet. Financial services are more direct and the customer base is broader. widely. In addition, the customers of Internet finance are mainly small and micro enterprises, covering some of the blind spots of financial services in the traditional financial industry, which is conducive to improving the efficiency of resource allocation and promoting the development of the real economy.

4. Rapid development:

Relying on the development of big data and e-commerce, Internet finance has grown rapidly. Take Yu'E Bao as an example. Within 18 days of its launch, Yu'E Bao has accumulated more than 2.5 million users and 6.6 billion yuan in transferred funds. According to reports, Yu’e Bao has a scale of 50 billion yuan, making it the largest public offering fund.

5. Weak management:

First, weak risk control. Internet finance has not yet been connected to the credit reporting system of the People's Bank of China, and there is no credit information sharing mechanism. It does not have risk control, compliance and collection mechanisms similar to those of banks, and is prone to various risk problems. There is already Zhongdai.com P2P online lending platforms such as Wangyingtianxia and Wangyingtianxia declared bankruptcy or ceased services.

The second is weak supervision. Internet finance is in its infancy in China, with no regulatory and legal constraints, lack of entry thresholds and industry regulations, and the entire industry faces many policy and legal risks.

6. High risks:

First, the credit risk is high. At this stage, China's credit system is not yet perfect, and the laws related to Internet finance have yet to be implemented. Internet finance has lower default costs, which can easily lead to risk problems such as malicious loan fraud and money withdrawals.

In particular, P2P online lending platforms have become a hotbed for criminals to engage in criminal activities such as illegal fund-raising and fraud due to low entry barriers and lack of supervision. Since last year, P2P online lending platforms such as Taojindai, Youyi.com, and Antai Excellence have successively exposed incidents of "escape".

Second, network security risks are high. China's Internet security problems are prominent, and the problem of online financial crimes cannot be ignored. Once hackers attack, the normal operation of Internet finance will be affected, endangering consumers' financial security and personal information security.

Baidu Encyclopedia - Internet Finance (Concept)

Baidu Encyclopedia - China Banking and Insurance Regulatory Commission

Baidu Encyclopedia - Financial Regulatory Agency

Baidu Encyclopedia-People's Bank of China

Baidu Encyclopedia-China Securities Regulatory Commission