After several Chinese commercial banks, including Agricultural Bank of China and China Merchants Bank, have shut off trading interfaces with peer-to-peer lending platforms earlier this year, another commercial bank is following suit.
Minmin Dai, a Zhejiang-based P2P lending platform, said in a statement published on its website on June 24 that on receipt of the notification from third-party payment platforms, China Minsheng Banking Co. will shut down all its funding channels to the lender between June 27 and June 29.
This move marks the latest blow to China’s burgeoning but fraudulent-ridden online P2P lending industry, which has fallen into disrepute after the blow up of Ezubao’s ponzi scheme that cheated investors out of more than 7.6 billion dollars. Evidently this is also another major setback for cooperation between P2P lending platforms and commercial banks.
Earlier this year, Agricultural Bank of China, China Merchants Bank and other banks closed their P2P third-party payment services in a bid to “check risks”, dealing a heavy blow to the P2P industry.
A CEO within a P2P lender recently said that difficulties in cooperation between banks and P2P sites are not caused by lack of interest among commercial banks.
The main reason for such difficulties lies in the fact that the quality of P2P businesses varies greatly, and there are only a limited number of P2P sites that conform to the banks’ depository requirements, he noted.