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<Research>CICC: PBOC's Credit Repair Policy Benefits CN Banks, Expected to Boost New Investment in Personal Credit Like Consumer Loans/Mortgages
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On Monday (22nd), the People's Bank of China (PBOC) issued a notice on arrangements for implementing the one-time credit repair policy, according to CICC's research report. This policy targets individual overdue information for amounts below RMB10,000 between 1 January 2020 and 31 December 2025. Borrowers who fully repay by 31 March 2026 can avoid credit reporting. After credit repair, potential financing demand previously affected by credit records can be released. The broker expected it to somewhat drive new investment in personal credit products such as consumer loans, mortgages and business loans, boosting credit demand. However, in an environment where the overall macro leverage ratio of residents is declining and credit demand still awaits recovery, improving credit demand also requires further policy support in fiscal, real estate and other areas. Overall, the PBOC's credit repair policy benefits Chinese banks, effectively encouraging overdue debtors to repay debts and improving asset quality. The policy covers all financial institutions, benefiting major state-owned banks and leading joint-stock banks with more cautious risk control and better customer quality. AASTOCKS Financial News Website: www.aastocks.com |
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