CHI NAFR Syndicated Loan Measures


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.

Regulators CHI NFRA
Entity Types Bank
Reference RN NFRA No. 14 (2024), 10/12/2024; PR, CP 3/22/2024; Rpl CBRC No. 85 (2011);
Functions Compliance; Financial; Legal; Risk; Sales Practices; Treasury
Countries China
Category
State
Products Banking; Loan
Regions AP
Rule Type Final
Rule Date 3/22/2024
Effective Date 11/1/2024
Rule Id 205828
Linked to N/A
Reg. Last Update 10/12/2024
Report Section International

Last substantive update on 10/18/2024