Core Viewpoint - Increasingly, small and medium-sized banks are distancing themselves from partnerships with lending platforms, primarily due to compliance risks associated with internet lending practices [1][2]. Group 1: Changes in Collaboration with Lending Platforms - Many small and medium-sized banks plan to significantly reduce the number of lending institutions they collaborate with, retaining only a few top-tier platforms [1]. - Some banks have already begun to "cut off" lending business, with Urumqi Bank announcing the cessation of cooperative personal internet consumer loans as of October 1 [1]. - The implementation of the new regulations on internet lending has prompted banks to reassess their partnerships, leading to a trend of "cutting" lending business to mitigate compliance risks [1][2]. Group 2: Compliance Risks and Regulatory Environment - The new regulations have revealed that some lending platforms continue to offer loans with annual interest rates between 24% and 36%, raising concerns among banks about potential regulatory penalties [2]. - Banks are increasingly worried about compliance risks associated with lending platforms, leading them to wait for existing contracts to expire before discontinuing partnerships [2][3]. - Regulatory scrutiny has intensified, with banks facing detailed checks on compliance processes, including potential violations related to bundled services and hidden fees [3]. Group 3: Impact on Lending Business - The decision to cut lending partnerships has resulted in a significant drop in business volume for lending institutions, with reports indicating a decrease of over 20% in October [4]. - The success rate of loan collection efforts has also declined, with the M1 collection success rate dropping to 70%, leading to an increase in potential bad debt rates [4]. - As a result of these challenges, lending institutions are restructuring their risk management systems to focus on borrower repayment capabilities and intentions [4][5].