On Mar. 22, CHI NAFR proposed measures for syndicated loans.
CHI NAFR proposed Measures for the administration of syndicated loans, to optimize and improve management, supervision, healthy development of syndicated loans.
Existing guidelines were deemed insufficient due to changes in market environment.
Also released answers to reporters' questions, clarifying matters re the measures.
Measures
Key provisions include clarifying regulatory requirements, enriching syndicate organization models, optimizing distribution ratios, secondary market transfer rules.
Also standardizing syndicated loan fees, presenting more systematic requirements.
Introduction of group syndicate models, adjusting minimum percentages for lead banks' lending and distribution shares, allowing partial transfers of syndicated loans.
Fair charging practices are emphasized; regulations also clarify the roles and responsibilities of syndicated loan agents, who must possess appropriate capabilities.
Syndicated loans shall be uniformly managed through agents to prevent misconduct.
Added content regarding supervision and management of administrative punishment.
Effectiveness
The consultation is open until Apr. 20, 2024.
Oct. 2024 Implementation
On Oct. 12, 2024, CHI NAFR issued notice to implement the Measures for the administration syndicated loans with amendments, and answered reporters' questions.
Compared with the draft, the finalized measures refine the definition and grouping standards of grouped syndicates, improve relevant provisions on distribution ratios.
Add restrictions on distribution ratios when setting up joint lead banks and deputy lead banks, and better promote inter-industry cooperation and risk diversification.
The measures are effective from Nov. 1, 2024.
Document dated Oct. 12, 2024, received from CHI NFRA Oct. 15, summarized Oct. 17.
