Leasing, factoring and pawn shops get new regulator
The change is seen as a step toward bringing debt-related businesses under the umbrella of banking-related financial supervision
Financial leasing and commercial factoring companies and pawn shops will be subjected to regulation by the China Banking and Insurance Regulatory Commission from now on, according to the Ministry of Commerce, The Beijing News reported.
Earlier, China’s factoring market was divided into two parts: commercial factoring and bank factoring, which are supervised by the Ministry of Commerce and the China Banking Regulatory Commission respectively.
The financial leasing sector is divided into financial leasing firms, which are non-banking financial institutions approved by the China Banking Regulatory Commission, and lease finance firms, which are a general enterprise administrated by the Ministry of Commerce.
Shi Pengfeng, the co-founder of WDZJ.com, thinks it is reasonable to assign the supervision responsibility to the commission, since all of them are essentially debt-related businesses and should belong in the banking-related financial supervision category.