Zhong Guo Zheng Quan Bao·2025-06-03 20:43Core Viewpoint - The banking sector is moving to regulate high-interest, high-rebate auto loan practices, reducing commission rates significantly to promote sustainable growth in the automotive finance market [1][4][6]. Group 1: Changes in Auto Loan Practices - Agricultural Bank of China has halted high-interest, high-rebate practices, reducing car loan commission from 15% to 5%, leading to decreased subsidies for car prices [1]. - Multiple banks across regions like Beijing, Sichuan, and Henan are adjusting their auto loan commission structures under regulatory guidance, aiming to lower actual loan interest rates and enhance service quality [1][2]. - The shift from "loan 5, full 1" to "loan 5, full 2" or even "loan 5, full 3" indicates a tightening of loan terms, reflecting banks' inability to sustain previous subsidy levels [2][5]. Group 2: Market Dynamics and Competition - Auto dealers are incentivized to promote loans due to bank commissions, allowing them to offer lower prices and interest rates to customers [2][3]. - The competitive landscape is characterized by banks attempting to rapidly grow personal loan volumes through high commissions, which is not a sustainable strategy [3][4]. - The prevalence of similar financial products among banks has led to intensified competition, with many banks adopting high-rebate strategies to capture market share [4][6]. Group 3: Regulatory and Self-Regulatory Measures - The Sichuan Banking Association has initiated a self-regulatory agreement to optimize cooperation with auto dealers, aiming to lower actual interest rates and establish reasonable commission rates [6][7]. - Other regional banking associations are also promoting self-regulatory agreements to protect consumer rights and ensure high-quality development in the automotive finance sector [7]. - Regulatory bodies have mandated financial institutions to rectify high-interest, high-rebate practices and adhere to self-regulatory standards to maintain market order [7].