Core Viewpoint - The lending cooperation model, once seen as a shortcut for small and medium-sized banks to enhance retail business, is experiencing a significant decline due to new regulatory constraints and increasing compliance pressures. Group 1: Regulatory Changes - The turning point for the decline occurred with the implementation of the new regulations on October, which aimed to strengthen the management of internet lending by commercial banks [1] - Following the new regulations, many small and medium-sized banks discovered that some lending platforms were still engaging in high-interest rate businesses disguised as compliant loans [1][4] Group 2: Bank Responses - In response to the heightened regulatory scrutiny, many small and medium-sized banks are opting to cut ties with lending platforms to protect themselves from potential penalties [2] - Examples include Urumqi Bank, which announced the cessation of cooperative personal internet consumer loans, and Longjiang Bank, which has stopped cooperation with its only internet lending partner [2] Group 3: Impact on Lending Platforms - The collective retreat of small and medium-sized banks is creating a "cold wave" in the lending industry, with a reported drop of over 20% in business volume for lending institutions in October [5] - The success rate of debt collection for overdue borrowers is declining, leading to an increase in potential bad debt rates and severely squeezing profit margins for the industry [5] - Many lending institutions are being forced to restructure their risk control systems and shift resources towards post-loan management to mitigate losses [5]