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People's Bank of China Deputy...........>

CHINA PRESS
CHINA PRESS: People's Bank of China Deputy Governor Pan Gongsheng said Saturday
that the Chinese government's new regulation issued Friday prohibiting the
establishment of new finance companies which provide payday loans was aimed to
clamping down on illegal practices in the sector, the Financial News, a
newspaper managed by the PBOC, reported Monday. Payday loan companies have been
criticized for their high interest rates, their abusive practices used in
collecting unpaid loans, as well as the risks they pose to the financial sector.
The new regulation wins time to solve the underlying problems in the sector, Pan
said, referring to the overhaul of the regulation framework for new payday loans
firms and moves to tighten regulation of existing payday loan companies.
Regulators will create rules to assess market entry qualifications for payday
loan companies and are considering amending existing regulations for the payday
loan companies that were created around a decade ago, Pan added. (Financial
News)

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