Core Viewpoint - The implementation of the new regulations on internet lending, referred to as the "Assisted Lending New Regulations," has led to significant adjustments in the industry, with banks and financial institutions tightening their lending practices and focusing on compliant, larger lending platforms while phasing out high-risk, high-interest loans [1][5]. Summary by Sections Regulatory Changes - The new regulations require commercial banks to manage partnerships with lending platforms and credit enhancement service providers through a whitelist system, prohibiting collaboration with unlisted entities [2]. - Major platforms like Ant Group, JD.com, Douyin, Meituan, and Didi have emerged as dominant players in the whitelist, leveraging their comprehensive service offerings and regulatory compliance to attract banks [2][3]. Impact on Interest Rates - The regulations have established a compliance interest rate cap of 24%, significantly reducing the space for high-interest loans (24%-36%) and pushing many smaller lending institutions out of the market [3][4]. - Lending platforms have adjusted their interest rate displays to highlight the 24% cap, indicating a shift towards compliance and transparency in pricing [3][4]. Industry Restructuring - The new regulations are driving a structural transformation in the lending industry, with a focus on compliance and the elimination of non-compliant lending practices, such as bundling fees and hidden costs [4][6]. - The market is witnessing a consolidation effect, where larger, compliant lending platforms are gaining market share at the expense of smaller, less compliant entities [6][7]. Challenges for Smaller Banks - Regional small banks face challenges in expanding their customer base and improving their risk management capabilities, often relying on external platforms for lending, which may weaken their internal risk assessment abilities [7][8]. - Experts suggest that small banks should adopt a balanced approach, utilizing assisted lending as a transitional tool while developing their own risk management frameworks to ensure sustainable growth [8].