Shang Hai Zheng Quan Bao·2025-08-21 00:09Core Viewpoint - The Financial Regulatory Administration has released a draft of the "Management Measures for Commercial Bank Mergers and Acquisitions Loans," aimed at optimizing merger loan services and supporting the construction of a modern industrial system and new productivity development [1] Summary by Relevant Sections Scope of Mergers and Acquisitions Loans - The draft expands the applicable scope of mergers and acquisitions loans to include certain conditions for equity participation transactions, in addition to control-type mergers [2] - Mergers and acquisitions loans are categorized into control-type loans, which support acquiring control of target enterprises, and participation-type loans, which support acquiring a stake without control, requiring a minimum of 20% equity for participation-type loans [2] Differentiated Requirements - The draft sets differentiated operational qualification requirements for banks engaging in control-type and participation-type loans, including good regulatory ratings and meeting specific asset scale requirements [2][3] Loan Conditions and Risk Assessment - The draft optimizes loan conditions by increasing the maximum loan-to-transaction price ratio and extending the maximum loan term to better meet reasonable financing needs [3] - It emphasizes the assessment of repayment capacity, requiring banks to evaluate the acquirer's ability to repay loans while considering the future development prospects and operational efficiency of the merged entity [3][4] Risk Management Framework - A "full-process closed-loop" risk management system is established, requiring due diligence and risk assessment by a professional team before, during, and after the loan process [4] - The draft aims to balance business development and risk prevention by providing clear business guidelines while enhancing detailed management for the unique nature of mergers and acquisitions loans [4] Implementation and Feedback - Some practical standards within the draft remain to be clarified, such as specific criteria for "new productivity transformation" and quantifiable indicators for "reasonable economic returns" [5] - The Financial Regulatory Administration will consider feedback to further refine the draft and promote healthy development of mergers and acquisitions loan business [5]