Internet finance companies should be subject to the same deposit rate caps and reserve requirements as traditional lenders, China Business News reported Thursday, citing some industry experts.
Their funds should be considered general deposits, the experts were quoted as saying.
These non-bank entities include Alibaba Group which operates Yu E Bao, an internet finance product.
The China Banking Association, an industry group backed by the China Banking Regulatory Commission, has held a meeting with some banking industry leaders to discuss a self-policing system for deposit-taking companies, the report said.
Deposits held by internet finance companies should be treated as general deposits, not interbank deposits, to maintain order in the banking sector and ensure the safety of the nation’s financial system, the report said, citing unnamed industry leaders.
At present, Alibaba is not required to set aside reserves and is not subject to a deposit rate cap on its Yu E Bao accounts.
Since its launch in May, Yu E Bao has attracted 400 billion yuan (US$65.36 billion) of deposits. It offers an annualized interest rate of 6 percent on seven-day deposits and longer.
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