Core Viewpoint - The implementation of the new regulation on internet lending by commercial banks, referred to as the "Assisted Lending New Regulation," is expected to significantly reshape the lending landscape and impose strict compliance requirements on banks and lending institutions [1][2]. Group 1: Regulatory Changes - The new regulation, effective from October 1, 2025, establishes clear compliance boundaries for internet lending by commercial banks, which will have a profound impact on the assisted lending industry [1][2]. - One of the core requirements of the regulation is the "list management" of lending partners, mandating banks to disclose their cooperative institutions [4][10]. Group 2: Market Dynamics - As of the night before the new regulation took effect, major state-owned banks had not disclosed their cooperative institution lists, indicating a cautious approach towards the assisted lending business [2][8]. - The disclosed lists show a trend where large internet companies are preferred partners for banks, leading to a concentration of funding and resources in the hands of major players [2][5]. Group 3: Financial Implications - The regulation imposes strict controls on "comprehensive financing costs," particularly targeting products with annualized costs exceeding 24%, which may lead to a significant restructuring of the lending market [2][10]. - The regulation aims to eliminate high-interest lending practices, with banks collectively rejecting asset categories with annualized costs as high as 36% [11]. Group 4: Institutional Responses - Different types of banks exhibit varying preferences and scales in their cooperative lists, influenced by their risk appetites and business strategies [7]. - Some banks, like Ping An Bank, have a higher number of disclosed partners due to their internet loan platform needs, while others are considering withdrawing from the assisted lending sector due to rising costs and high default rates [7][8]. Group 5: Future Regulatory Focus - Post-implementation, regulatory attention will likely focus on pricing transparency and comprehensive cost control, particularly regarding hidden fees and charges that may arise in the lending process [10][12]. - The regulation emphasizes the need for banks to take core responsibility for risk management, with a focus on evaluating their independent risk control capabilities [12].