Liu Shiyu, the vice president of China's central bank, disclosed at a recent work conference that China will establish a legal system for the protection of the interests of financial service users and speed up the amendment of relevant rules including the General Rules on Loans.
Liu stated that the central bank should learn from the financial legislation of other countries and study the legal issues and policies related to financial services to prepare for the amendment of relevant laws and regulations. He added that importance should be attached to the study of financial consumer issues to ensure the establishment of a legal system for protecting the financial rights of consumers.
It is reported that the amendment on the General Rules on Loans will include the imposition of a limit on loans to small creditors by allowing them to borrow no more than twice their own net capital, from no more than two financial institutions and one non-financial institution.
