Chinese government plans Credit rating criteria for Internet finance agencies.

The Chinese Academy of International Trade and Economic Cooperation, an institute affiliated with the Chinese Ministry of Commerce, announced its plan to develop a set of guiding criteria for the accreditation and credit rating of Chinese Internet finance agencies. The institute plans to finish drafting the criteria by the end of this year. The document will be published next year after a round of public input. This will be the first official document in the Internet finance agency rating industry.

There has been lots of questioning about Chinese P2P rating agencies in terms of authority, accuracy and objectivity. Currently, most rating agencies rely on self-provided data by P2P platforms to do their analyses. There is also an ignorance of the wide variety of platforms’ business models and information disclosure standards in developing the rating methodologies. The document being drafted will effectively solve the current problems by setting up playing rules.

The situation is slightly different in Cameroon, for Ovamba is one of the first Fintech platforms. Also, regulations in place are mostly concerning traditional sources of financing, which are banks and microfinances and Banks. Being an alternative finance (neither a bank nor microfinance) financial services are mostly provided in form of secured transactions and not loans.

For more information www.ovamba.com