In order to further standardize the charging and management of all aspects of credit financing, maintain the right to know, independent choice and fair trading rights of enterprises, and reduce the comprehensive cost of enterprise financing, recently the China Banking Regulatory Commission and China Insurance Regulatory Commission, together with the Ministry of Industry and Information Technology, National Development and Reform Commission, Ministry of Finance, People's Bank of China and General Administration of Market Supervision, issued the "Notice on Further Regulating Credit Financing Charges and Lowering the Comprehensive Cost of Corporate Finance" (hereinafter referred to as the "Notice"). 

China Banking Regulatory Commission and China Insurance Regulatory Commission sorted out and summarized the special charge management and on-site inspections in recent years, and investigated different types of institutions. The Ministry of Industry and Information Technology has launched an online questionnaire survey on corporate credit financing charges, as well as surveys of some industry associations and enterprises. 

The "Notice" adheres to the principles of marketization and rule of law, with all aspects of financing as the main line, and whether to increase the comprehensive cost of financing as a standard, while considering the supply side and demand side of credit funds, charging behaviors for credit, loan assistance, credit increase and evaluation links and charging management have been standardized, strengthening the role of internal control, external supervision and incentives. It is required in the "Notice" that the banks shall strengthen the management of cooperative institutions. The "Notice" combines the introduction of new measures, detailed old policies, and systematic original bans, and is applicable to all types of enterprises, while fully embodying policy support for small and micro enterprises. 

The "Notice" has 6 sections and 20 articles, mainly including the followings: 

The first to fourth sections specify the requirements of different financing links. In the credit link, part of the enterprise-related charges were abolished, the existing regulations prohibiting the linking of loans and deposits and the prohibition of forced bundling were detailed, and banks were encouraged to conduct credit reviews in advance. In the loan assistance process, banks are required to specify their own charging items, strengthen the management of third-party institutions, and evaluate the charging of cooperative institutions. In the credit-increasing link, the banks are required to reasonably introduce credit-increasing arrangements, and put forward requirements for the main body and method of credit financing related expenses from three perspectives: independent bank commitment, corporate and bank joint commitment, and corporate independent commitment. In the appraisal link, the "Notice" puts forward requirements for bank capital pricing management, credit rating, and provisioning and other factors that affect financing costs, and requires performance evaluation to eliminate inappropriate incentives. 

The fifth section regulates internal control and supervision related to charges. The banking and insurance institutions are required to play the role of corporate governance, improve the financing charge management system, regulate the behavior of branches and employees, strictly manage the charge system, strengthen internal audits, and fully disclose the service information. 

The sixth section proposes to exert the joint force of cross-administration supervision and give positive incentives. Including to promote and deepen the integration of production, strengthen the management of whitelists of enterprises and projects, and improve the mechanism for reporting and punish the illegal charges; give a reasonable evaluation of the operating performance assessment of state-owned holding institutions; and support and strengthen the self-discipline of industry. In addition, strictly restrict the arbitrage of enterprises that incorporate low-cost funds. 

The "Notice" will be implemented from June 1, 2020.China Banking Regulatory Commission and China Insurance Regulatory Commission, together with relevant ministries and commissions, will continue to pay attention to enterprise credit financing charges, and continue to promote the reduction of enterprise financing costs.