Nov
29
China’s Micro-Lending Mess
ByOnline lenders have serious problems. But banning them would be a mistake.
In their bid to reduce risk, China’s financial regulators are cracking down on a promising business: online micro-lending. Although the industry has some serious problems, killing it off would be a big mistake.
Last week, state media announced that broad changes were coming to the sector, on the orders of the State Council’s Financial Stability and Development Committee. Approvals of new lenders have been halted, and existing firms are likely to be severely curtailed…
