The China Banking and Insurance Regulatory Commission: major matters such as the establishment and termination of small loan companies are uniformly managed by local financial regulatory authorities at the provincial level and shall not be delegated to lower levels.

On August 23, the China Banking Regulatory Commission issued the "Interim Measures for the Supervision and Management of Small Loan Companies (Draft for Solicitation of Comments)", which stipulates that provincial-level local financial management agencies are responsible for supervising and managing small loan companies in their respective regions and handling risks. Major matters such as the establishment and termination of small loan companies are uniformly handled by provincial-level local financial management agencies and cannot be delegated. While adhering to the principle of provincial-level overall responsibility, provincial-level local financial management agencies can authorize sub-provincial cities, prefecture-level cities, and county-level institutions to undertake small loan company supervision functions and carry out regulatory work such as off-site supervision, on-site inspections, and enforcement against illegal acts. The original text is as follows: Interim Measures for the Supervision and Management of Small Loan Companies (Draft for Solicitation of Comments) Chapter I General Provisions Article 1 [Purpose and Basis] These measures are formulated to standardize the behavior of small loan companies, strengthen supervision and management, prevent and resolve risks, promote the sound operation and healthy development of small loan companies, and are based on relevant laws and regulations. Article 2 [Applicability] These measures apply to small loan companies legally established within the territory of the People's Republic of China. Online small loan companies shall comply with the provisions of these measures regarding small loan companies. Article 3 [Definition] Small loan companies referred to in these measures mean local financial organizations legally established within the territory of the People's Republic of China, which do not accept public deposits and mainly engage in small loan business. Online small loan companies referred to in these measures mean small loan companies engaged in online loan business. Article 4 [Operating Principles] Small loan companies conducting business operations shall comply with relevant laws and administrative regulations, adhere to the principles of equality, voluntarism, fairness, and honesty and creditworthiness, and shall not harm national interests, public interests, or the legitimate rights and interests of consumers. Article 5 [Business Objectives] Small loan companies conducting business operations shall adhere to the principles of small amounts and decentralization, leverage flexible and convenient advantages, adhere to the concept of inclusive finance, mainly serve groups such as small and micro enterprises, farmers, and individual consumers, promote consumption expansion, and support the development of the real economy. Article 6 [Local Responsibilities] Provincial-level local financial management agencies are responsible for supervising and managing small loan companies in their respective regions and handling risks. Major issues such as the establishment and termination of small loan companies are uniformly handled by provincial-level local financial management agencies and cannot be delegated. While maintaining the overall provincial-level responsibility, provincial-level local financial management agencies may authorize sub-provincial cities, prefecture-level cities, and county-level institutions to undertake the supervision functions of small loan companies and carry out regulatory work such as off-site supervision, on-site inspections, and enforcement against illegal acts. Article 7 [Responsibilities of the General Administration and its Branches] The China Banking Regulatory Commission is responsible for formulating regulatory rules for small loan companies, providing business guidance and supervision to the local government agencies responsible for supervising small loan companies. The branches of the China Banking Regulatory Commission shall strengthen coordination with local financial management agencies regarding the supervision of small loan companies according to their respective duties. Chapter II Business Operations Article 8 [Approval] The establishment of small loan companies engaging in small loan business should be examined and approved by provincial-level local financial management agencies in accordance with relevant laws, regulations, and other provisions and reported to the China Banking Regulatory Commission for record-keeping. Article 9 [Business Scope] Small loan companies may engage in the following or all of the following businesses in accordance with the law and shall specify in their business scope: (1) Granting small loans; (2) Discounting commercial bills; (3) Intermediary services related to financing consultation, financial advisory, and other services related to loan business; (4) Other businesses stipulated by laws, administrative regulations, and the China Banking Regulatory Commission. Small loan companies shall not issue or sell financial products such as wealth management products, trusts, and funds. Article 10 [Business Expansion] Online small loan companies shall ensure that core business processes such as loan application acceptance, risk assessment, loan approval, loan disbursement, and loan recovery are completed through online operations. For credit approval and credit management needs, online small loan companies may conduct offline activities such as on-site investigations, asset verification, and overdue loan recovery. Article 11 [Operating Area] Small loan companies shall operate within the approved geographical area in accordance with the law. Small loan companies shall not operate across provinces, autonomous regions, or municipalities directly under the central government. The conditions for small loan companies to operate across cities are stipulated by provincial-level local financial management agencies. The operating area conditions for online small loan companies shall be stipulated separately. Article 12 [Contract Elements] When small loan companies grant loans, they shall enter into a written contract with borrowers, specifying the type of loan, purpose, amount, comprehensive actual interest rate, term, repayment method, default liability, and other matters. Article 13 [Loan Examination] Small loan companies shall conduct an examination of the borrower's loan purpose, actual needs, income level, asset status, overall liabilities, etc., and reasonably determine the loan amount and term. Small loan companies shall not grant loans that clearly exceed the borrower's ability to repay. Article 14 [Discounting of Commercial Bills] Small loan companies engaging in the discounting of commercial bills shall have good operating and financial conditions, no continuous overdue bills in the past two years, or failure to disclose information as required, and shall obtain approval from the provincial-level local financial management agencies. Article 15 [Loan Concentration] The total balance of all loans to the same borrower by a small loan company shall not exceed ten percent of its net assets, and the total balance of loans to the same borrower and its related parties shall not exceed fifteen percent of its net assets. Online small loan companies shall not exceed RMB 200,000 for loans used for consumption by a single account holder, and the total balance of loans for production and operation purposes to a single account holder shall not exceed RMB 10 million. Article 16 [Loan Purpose] Small loan companies shall clearly specify the loan purpose with the borrower and monitor it according to the contract. The loan purpose shall comply with laws, regulations, national macro-control, and industry policies, and shall not be used for the following purposes: (1) Financial investments such as stocks, bonds, futures, financial derivatives, and asset management products; (2) Equity investments; (3) Repayment of loans or other financing; (4) Other purposes prohibited by laws, administrative regulations, or the China Banking Regulatory Commission.journey.Article 17 [Cooperative Loans] If a small loan company cooperates with a third-party institution to carry out loan business, it shall meet the following requirements: (1) Core business such as credit review and risk control must not be outsourced; (2) It shall not jointly invest in lending with institutions that do not have lending business qualifications; (3) It shall not accept credit enhancement services from institutions that do not have the qualifications for credit insurance and guarantee insurance supervision, or other forms of indirect credit enhancement services such as guarantees; (4) It shall not help cooperative institutions to evade regulatory requirements such as operating in a different location; (5) It shall not only provide services such as marketing and customer acquisition, customer credit profiles and risk assessment, information technology support, and overdue collection without actually providing funding; (6) The co-loan single investment ratio shall not be less than 30%; (7) Other requirements as stipulated by the China Banking Regulatory Commission. Article 18 [Loan Interest] Small loan companies shall calculate the ratio of all interest and fees charged to the borrower to the loan principal as the comprehensive actual interest rate, convert it into an annualized form, include it in the loan contract, and shall not violate relevant national regulations. Small loan companies shall fully pay the loan principal to the borrower according to the amount specified in the loan contract, without deducting interest, fees, management fees, or deposits in advance. Small loan companies shall follow the principles of legality and compliance, prudent operation, voluntary equality, honesty and trustworthiness, reasonably determine and gradually reduce the level of comprehensive actual interest rates for serving small and micro-enterprises, farmers, and individual consumers, support the development of inclusive finance, and improve the efficiency of inclusive financial services. Article 19 [Intermediary Services] Small loan companies providing financing consulting, financial advisory, and other intermediary services related to loan business shall charge fees based on the actual services provided, ensuring fair pricing, and shall not collect fees for services not provided, or collect interest in disguised forms. Article 20 [Financing Channels] Small loan companies may finance through bank loans, shareholder loans, and other non-standard forms, or through issuing bonds, asset securitization products (with loans issued by the company as underlying assets) and other standardized forms. The funds for shareholder loans shall come from the shareholder's own funds. If a small loan company issues asset securitization products based on loans issued by the company, it shall meet the following conditions and obtain approval from the provincial-level financial management institution: (1) Having a sound corporate governance mechanism, complete internal control system, and robust risk management system; (2) Good credit standing, with no significant violations of laws or regulations in the past three years; (3) Good regulatory credit rating; (4) Other conditions stipulated by laws, administrative regulations, and the China Banking Regulatory Commission. If a small loan company issues bonds, in addition to meeting the conditions specified above, it shall have good business management, continuous profitability in the past three accounting years, and obtain approval from the provincial-level financial management institution. Small loan companies shall not accept or indirectly accept public deposits, or finance through various local trading platforms or private equity funds. Article 21 [Financing Leverage] The balance of funds raised by small loan companies through bank loans, shareholder loans, and other non-standard forms shall not exceed twice their net assets. The balance of funds raised by small loan companies through issuing bonds, asset securitization products, and other standardized forms shall not exceed four times their net assets. Article 22 [Source of Lending Funds] The source of lending funds for small loan companies shall be limited to their own funds and external funding. Small loan companies shall not use the pre-deposited guarantee funds of cooperative institutions for lending. Article 23 [Negative List of Operating Behaviors] Small loan companies shall not engage in the following operating behaviors: (1) Renting or lending out licenses, providing "channels" for lending to entities without lending business qualifications; (2) Assisting entities without lending business qualifications to apply for mobile applications (Apps) containing the word "financial"; (3) Transferring or indirectly transferring other credit assets of the company except for non-performing credit assets to entities without lending business qualifications; (4) Other behaviors prohibited by laws, administrative regulations, and the China Banking Regulatory Commission. Chapter III Corporate Governance and Risk Management Article 24 [General Requirements] Small loan companies shall establish a corporate governance, internal control, and risk management system that is commensurate with their business nature, scale, and complexity. Article 25 [Corporate Governance] Small loan companies shall establish a sound corporate governance structure with clear organization, responsibilities, effective checks and balances, and reasonable incentives and constraints, clarify the responsibilities and boundaries of governance bodies, and construct a governance mechanism that ensures scientific decision-making, effective execution, and strong supervision to continuously improve the level of corporate governance. Article 26 [Internal Control] Small loan companies shall establish a sound internal control system, strictly separate authorization and approval, construct a clear division of responsibilities and clear processes, carry out effective approval decision-making procedures, strengthen full-process management of loans, implement due diligence, review and approval, risk control, and post-loan management requirements to ensure the execution of various systems. Article 27 [Risk Management] Small loan companies shall, in accordance with the requirements of prudent operation, formulate and implement comprehensive, systematic, and standardized business rules and management systems, including asset quality, risk reserves, risk concentration, information disclosure, related party transactions, and liquidity management, to effectively identify and control various risks in business and management activities. Small loan companies shall establish a sound bill business management system, prudently conduct commercial bill discounting business, and take effective measures to prevent market risks, credit risks, and operational risks. Article 28 [Asset Classification] Small loan companies shall establish a standardized asset risk classification system and risk reserve system, strengthen asset quality management, timely and fully provide for risk reserves, and enhance their ability to resist risks. Small loan companies shall categorize loans overdue for more than ninety days as non-performing loans. Article 29 [Loan Account] Small loan companies shall strengthen fund management, implement special management of loan funds, and ensure that all funds enter the loan account. Small loan companies shall report the establishment of loan accounts to the provincial-level financial management institution and regularly provide reports on the operation of loan accounts and the opening bank as required.The detailed account statement of the loan special account funds issued.Small loan companies are not allowed to use shareholders, senior management, internal staff, and related parties' personal accounts to issue and recover loans. Article 30 [Management of Related Transactions] Small loan companies should establish and improve a system for managing related transactions to comprehensively and accurately identify related parties. Related transactions should comply with laws and regulations and relevant regulatory requirements, strictly adhere to principles of honesty and credit, openness and fairness, transparency, clear structure, and commercial principles, and should not be more favorable than similar transactions with non-related parties. Significant related transactions of small loan companies should be approved by the shareholders' meeting or the board of directors. Shareholders and directors with a relationship to the related transaction should not participate in the voting of the transaction. Small loan companies should enhance the disclosure of related transactions, disclose related parties and related transactions in the notes to the financial statements. Significant related transactions should be disclosed separately, while other related transactions can be disclosed collectively. Article 31 [Management of Cooperative Institutions] Small loan companies should strengthen the management of the list of cooperative institutions to ensure that cooperative institutions, such as mobile applications, mini-programs, and websites, are filed in accordance with the law. They should also identify and evaluate risks that may result from the illegal actions of cooperative institutions and urge them to implement compliance management and consumer rights protection responsibilities. Cooperative institutions include but are not limited to various institutions that cooperate with small loan companies in marketing, customer acquisition, capital investment and loan issuance, payment and settlement, risk sharing, information technology, and overdue collection. Article 32 [Information Technology Construction] Small loan companies should strengthen their information technology construction, formulate information technology strategies that align with their business plans, and enhance information technology governance. They should integrate information technology risk management into their risk management system, establish and improve information technology management systems, build information systems for business management and financial management, and submit non-faced supervision data on time. Small loan companies should enhance network security management, data security management, business continuity management, and information technology outsourcing management. They should implement the national network security level protection system, carry out network security grading filing, regularly conduct level protection evaluations, fully identify, monitor, and control information technology risks, and ensure the safe and stable operation of information systems. Small loan companies should deepen the application of data in business operations and risk management, actively use digital technology to enhance financial service capabilities.Article 39 [Reporting] Microfinance companies that issue loans, offer loan products, and conduct marketing and customer acquisition through mobile applications (APPs), mini-programs, websites, and other internet platforms (including self-owned and cooperative institutions) should report the information of the mobile applications(APPs), mini-programs, websites, and other internet platforms as well as detailed product information to the local financial management institution. Article 40 [Notification] Microfinance companies should follow the principle of transparency and fulfill their notification obligations. Reading the contract should be a formal step before submitting a loan application, and the contract should clearly state the borrower, type of loan, amount, comprehensive actual interest rate, fees, repayment arrangements, overdue collection, default responsibilities, and other relevant details in a prominent manner. Article 41 [Prohibited Acts] Microfinance companies are prohibited from the following behaviors: 1. Conducting marketing and advertising in a fraudulent or misleading manner, promoting only low thresholds, low interest rates, high amounts, etc., leading borrowers to take on excessive debt and multiple loans. 2. Providing loans to borrowers in a manner that is misleading, deceptive or coercive, not in line with their loan purpose or repayment capacity. 3. Targeting minors with unsecured personal loans or promoting credit products specifically to students. 4. Listing loans as default payment options. 5. Selling products or services against the borrower's wishes or adding other unreasonable conditions. Article 42 [Loan Collection] Microfinance companies should establish an overdue loan collection management system in accordance with laws, regulations, requirements of the China Banking Regulatory Commission, and local financial management institutions, to standardize the procedures and methods of loan collection. When collecting loans through third-party institutions, microfinance companies should not engage in the following behaviors: 1. Using or threatening to use violence, or in any other way harming the person's body, reputation, or property. 2. Insulting, defaming, threatening, stalking, harassing, or in any other way disrupting the person's normal work and life. 3. Using misleading or deceptive illegal means. 4. Illegally seizing the borrower's property. 5. Violating regulations by disclosing the borrower's identity, address, contact information, contacts, etc. 6. Collecting from individuals or entities not responsible for debt repayment according to the law or contract. 7. Other behaviors that involve illegal or improper means of loan collection. Microfinance companies should not entrust third-party institutions with a history of illegal or inappropriate violent debt collection for loan collection. If a microfinance company discovers violent debt collection behavior by a cooperating institution, they should immediately terminate the partnership and promptly report the illegal behavior to the relevant authorities. Article 43 [Information Protection] Microfinance companies and their internet platforms should collect, store, and use customer information following the principles of legality, legitimacy, and necessity. The customer should be reminded to read the authorization letter content prominently on the relevant page and the authorization letter should disclose the content of the collected information, the method and duration of use, etc. Customer information should only be collected, stored, and used after the customer has read and signed the authorization. Microfinance companies should process customer information stored according to laws, regulations, and agreements with customers and should not disclose or alter customer information. Without customer authorization or consent, microfinance companies and their internet platforms should not collect, store, use, process, transmit, provide to others, disclose, delete customer information, except as provided by laws and regulations. Article 44 [Complaint Handling] Microfinance companies should establish a complete consumer complaint handling system, maintain open channels for complaint acceptance, clarify feedback mechanisms, and handle consumer complaints lawfully, compliantly, actively, and properly. Article 45 [Diversified Dispute Resolution] Microfinance companies should establish a mechanism for resolving conflicts and disputes, actively resolve conflicts and disputes with consumers through negotiation, mediation, etc. Chapter 5 Termination of Abnormal Business of Microfinance Companies Article 46 [Treatment of Serious Illegal Operations] For microfinance companies with serious illegal behavior, the provincial financial management institution may cancel its microfinance business qualifications based on relevant laws, regulations, and regulatory provisions, and require them to change or cancel their names and business scope by market supervision departments within a specified period. If a microfinance company changes its name or business scope, it should make clear arrangements for outstanding debts. Article 47 [Treatment of Missing, Shell Companies] For "missing" or "shell" microfinance companies, the provincial financial management institution should publicize them to society. If there are no objections after the public notice period, related companies should be guided to change or cancel their names and business scope by market supervision departments. For companies determined to have ceased operations long-term without following the provisions of the Company Law of the People's Republic of China and the Interim Measures for the Public Disclosure of Enterprise Information, the provincial financial management institution should request the market regulation department to revoke their business license. For "missing" or "shell" microfinance companies that have changed their name or business scope or had their business licenses revoked in accordance with the law, the provincial financial management institution should cancel their business qualifications. Article 48 [Criteria for Determining Missing] Companies meeting one of the following conditions should be determined as "missing" companies: 1. Unable to be contacted. 2. Unable to be found at the company's registered address during an on-site investigation. 3. Although company employees can be contacted, they are unaware and cannot contact the actual controlling person of the company. 4. Failure to submit data information as required by regulators for three consecutive months. Article 49 [Criteria for Determining Shell] Companies meeting one of the following conditions should be determined as "shell" companies: 1. No legitimate reason for not conducting loan issuance and other business or self-closure in the past six months. 2. No tax records or "zero declaration" (except for those enjoying national tax exemption policies). 3. No records of social security contributions in the past six months. Article 50 [Termination] Microfinance companies that dissolve or are declared bankrupt due to mismanagement should undergo liquidation and deregistration in accordance with the law, with the liquidation process supervised by the provincial financial management institution.After the completion or bankruptcy proceedings come to an end, the liquidation institution should promptly submit a liquidation report to the provincial local financial management agency, and apply for deregistration registration with the company registration authority.Provincial local financial regulatory authorities should promptly disclose to the public the information on the cancellation or withdrawal of business qualifications for small loan companies. Chapter VI Supervision and Management Article 51 [Regulatory Responsibilities] Provincial local financial regulatory authorities should establish a sound supervision and management system, and take regulatory measures such as examination and approval, non-site supervision, on-site inspection and investigation, and regulatory interviews in accordance with the law for small loan companies. Article 52 [Market Access Regulation] Provincial local financial regulatory authorities should strictly enforce standards and procedures in accordance with existing regulations, strengthen communication and coordination with market regulators, strictly control the access of small loan companies, and enhance the review of shareholders' credit levels, sources of investment funds, risk management capabilities, etc. The main shareholders and actual controllers of small loan companies should have good financial conditions and integrity records. Article 53 [Non-site supervision] Local financial regulatory authorities should strengthen non-site supervision of small loan companies, collect financial statements, operational management information, audit reports, etc., conduct regulatory analysis and evaluation of the business activities and risk conditions of small loan companies. Provincial local financial regulatory authorities should regularly submit regulatory data information and risk analysis reports to the national financial regulatory authorities in accordance with the non-site supervision system formulated by the national financial regulatory authority. Local financial regulatory authorities should strengthen the review of mobile applications (APPs), mini-programs, websites, and other internet platforms (including self-owned and cooperative institutions) information and product details reported by small loan companies. If a small loan company's self-owned platform is found to be unregistered according to law, the company should be ordered to rectify within a specified time. If a cooperative institution's platform is found to be unregistered, the small loan company should be ordered to terminate cooperation with them. Article 54 [On-site inspection and investigation] Local financial regulatory authorities should carry out on-site inspections and investigations of small loan companies in accordance with the law, conduct inspections and investigations at their offices or business premises, interview relevant personnel, access and copy relevant documents and data related to the inspection, and conduct in-depth understanding of the company's operating conditions to identify illegal and irregular activities. When conducting on-site inspections and investigations, the staff of local financial regulatory authorities should be cooperated by relevant units and individuals, provide truthful information and relevant documents and data related to the matter being investigated, and not refuse, obstruct, or conceal. Local financial regulatory authorities should select a certain proportion of small loan companies for on-site inspections every year to achieve full coverage within three years. Article 55 [Regulatory interviews] Local financial regulatory authorities can conduct regulatory interviews with directors, senior management, controlling shareholders, and actual controllers of small loan companies as needed, requiring them to explain issues related to the business activities and risk management of the company. Article 56 [Classification supervision] Provincial local financial regulatory authorities should establish a system for evaluating and supervising small loan companies, conduct regulatory ratings based on the business scale, management level, compliance, and risk conditions of small loan companies, and implement classification supervision and management according to the rating results. Article 57 [Behavioral supervision] Local financial regulatory authorities should regularly conduct supervision and inspections of consumer rights protection work of small loan companies, hold small loan companies accountable for handling consumer complaints, and promptly correct any actions that harm the legitimate rights and interests of consumers. Article 58 [Risk disposal] In case of significant risks or serious harm to creditors and customers' legitimate rights and interests in small loan companies, provincial local financial regulatory authorities should organize risk disposal in accordance with the law. Article 59 [Handling of Illegal Operations] In cases of illegal operations by small loan companies with penalties prescribed by relevant laws and regulations, provincial local financial regulatory authorities should coordinate with relevant departments to impose penalties. In cases involving crimes, they should be handed over to the public security authorities for investigation. For cases where penalties are not prescribed by relevant laws and regulations or where the standards for penalties are not met, provincial local financial regulatory authorities may take measures such as regulatory interviews, issuing warning letters, ordering corrections, public announcements, recording in the database of illegal and irregular operations, and publicizing them. Article 60 [Regulatory Information Sharing] Local financial regulatory authorities and dispatched agencies of the national financial regulatory authority should establish a mechanism for sharing regulatory information on small loan companies, promptly share relevant regulatory information, and strengthen regulatory coordination. Chapter VII Supplementary Provisions Article 61 [Industry Self-discipline] The China Association of Microfinance Companies and other self-discipline organizations in the microfinance industry should actively play a role in strengthening industry self-discipline management, improving the quality of practitioners, increasing industry propaganda efforts, safeguarding industry legitimate rights and interests, and promoting industry standardized and healthy development. Article 62 [Implementation Rules] Provincial local financial regulatory authorities may formulate or revise specific implementation rules for the supervision and management of small loan companies in their jurisdiction in accordance with laws and regulations and these measures, and report to the national financial regulatory authority for record within twenty working days of issuance. According to regulatory needs, provincial local financial regulatory authorities may make stricter and more prudent provisions on issues such as loan concentration, financing multiple, number of lending accounts, and major related party transaction recognition criteria in the implementation rules. Article 63 [Transition Period] Small loan companies should gradually meet the requirements set forth in these measures within the transition period specified by provincial local financial regulatory authorities. The transition period shall not exceed one year. For online small loan companies, the transition period for the single production and operation loan limit of ten million yuan shall not exceed two years. If an extension is necessary, it must be approved by the national financial regulatory authority. Article 64 [Definitions] In these measures, the following terms shall have the following meanings: (1) Major shareholder refers to a shareholder holding or controlling more than five percent of the company's shares or voting rights, or holding less than five percent of the shares but having a significant impact on the company's decision-making and management. (2) Actual controller refers to a person who, although not a shareholder of the company, can actually control the company's actions through investment relationships, agreements, or other arrangements. (3) Related party refers to a party as defined in the "Enterprise Accounting Standard No. 36 Disclosure of Related Parties".The other party or exert significant influence on the other party, as well as two or more parties under the same control, joint control, or significant influence. However, companies controlled by the state do not necessarily have a related relationship simply because they are both state-controlled.(4) Major related transactions refer to transactions between a microloan company and an affiliated party where a single transaction amount accounts for more than five percent of its net assets at the end of the previous quarter, or transactions between a microloan company and an affiliated party where the transaction balance with that affiliated party accounts for more than ten percent of its net assets at the end of the previous quarter. (5) Online loan business refers to the use of technologies such as big data, cloud computing, and mobile internet to analyze and assess the credit risk of borrowing customers, determine the loan methods and amounts, and complete the entire loan process online, including loan application acceptance, risk assessment, loan approval, loan disbursement, and loan recovery, through the accumulation of customer operations, internet consumption, internet transactions, and other data information obtained through legal channels. (6) Local financial regulatory institutions refer to provincial-level local financial regulatory institutions and institutions authorized by them, as well as planning and budget departments at the city, district, and county levels responsible for the supervision functions of microloan companies. The term "above" in this regulation includes the specified number, while "exceeding" and "insufficient" do not include the specified number. Article 65 [Interpretation] This regulation is interpreted by the China Banking and Insurance Regulatory Commission. Article 66 [Effective Date] This regulation shall come into effect from the date of issuance, and the "Notice of the General Office of the China Banking and Insurance Regulatory Commission on Strengthening the Supervision and Management of Microloan Companies" (CBIRC Office [2020] No. 86) shall be repealed simultaneously. This article is compiled from the "Official Website of the China National Financial Regulatory Commission" and edited by Xiu Wenqiang, GMTEight.