Core Viewpoint - Concerns regarding the potential termination of loan products with annual interest rates of 24%-36% are quietly reshaping the current landscape of the lending industry [1][8]. Summary by Sections Regulatory Changes - The National Financial Regulatory Administration issued new regulations on April 1, 2023, which will take effect on October 1, 2025, mandating that commercial banks manage lending platforms and credit enhancement service providers through a list system [5][6]. - The new regulations stipulate that the comprehensive financing cost of lending services must not exceed 24%, and all fee structures must be fully disclosed [7][8]. Impact on Lending Institutions - Many banks are withdrawing from partnerships with lending institutions that primarily offer loans at 24%-36% interest rates, fearing that these products may be phased out under the new regulations [11][14]. - As a result, lending institutions that rely on these high-interest products are facing reduced funding and are forced to cut marketing and operational costs to survive [8][9]. Market Dynamics - Some banks that continue to offer 24%-36% interest loans are raising their funding costs, with some quoting rates as high as 8%, making these loans less profitable [15][24]. - The withdrawal of banks from high-interest lending is leading to a concentration of resources among larger, more established lending firms, while smaller institutions may struggle to meet new compliance requirements [9][13]. Future Outlook - There are differing opinions on whether the 24%-36% interest rate loans will be completely eliminated. Some believe that strict interpretations of the new regulations will enforce a cap at 24%, while others think that there may still be room for these products under certain conditions [18][19]. - The "dual guarantee" model, which allowed for higher effective interest rates through complex arrangements, is expected to decline as regulatory scrutiny increases [21][22]. Strategic Responses - Some smaller banks are showing interest in the 24%-36% interest rate loans to expand their retail loan portfolios, despite concerns about regulatory risks associated with cross-regional operations [24][25]. - To attract these banks, lending institutions are offering higher profit-sharing arrangements, including guaranteed returns for banks involved in these high-interest loans [25].

Core Viewpoint - The new regulations on internet lending, effective from October 1, 2025, are causing significant changes in the lending landscape, particularly affecting small and medium-sized lending institutions that primarily operate in the 24%-36% annual interest rate range [2][3][4]. Group 1: Regulatory Impact - The "New Lending Regulations" require banks to implement a list management system for lending partners, which has led to many small lending institutions being excluded from partnerships with major banks [2][3]. - Banks are increasingly cautious and are opting to collaborate only with top-tier, publicly listed lending platforms, leaving smaller institutions struggling to secure funding [7][8]. - The regulations stipulate that the comprehensive financing cost for lending must not exceed 24%, which threatens the viability of high-interest lending products [3][4]. Group 2: Market Dynamics - As banks withdraw from high-interest lending, the remaining institutions are raising their funding costs, with some offering rates as high as 8% for lending partnerships [3][8]. - Many small lending institutions are cutting marketing and operational costs to survive in a tightening market, while some are pivoting to selling customer traffic to licensed consumer finance companies [3][4]. - The overall lending landscape is shifting towards a concentration of resources among leading firms, as smaller players face increased compliance costs and pressure to meet stricter entry requirements [4][9]. Group 3: Future Outlook - There is a divide in the industry regarding the future of 24%-36% annual interest rate lending, with some believing it will be phased out entirely, while others think it may continue under different operational frameworks [10][11]. - The "dual guarantee" model, which has been a primary method for high-interest lending, is expected to face challenges due to regulatory scrutiny, potentially leading to its decline [12][13]. - Some smaller banks are still interested in high-interest lending as a means to expand their retail loan portfolios, but they are cautious about regulatory risks associated with cross-regional operations [13][14].