Regulatory Alerts2017-01-16
Added · Updated
Circular dated December 28, 2016 regarding clarifications on monthly income for calculating consumer loan installment values
The document mandates that banks must obtain supporting documentation, such as employment letters or bank statements, to verify the monthly income of employees applying for consumer loans, particularly auto loans, rather than relying solely on customer disclosures. It defines monthly income as total income after deducting taxes and social insurance, plus other documented additional income elements. Banks are required to strictly adhere to the prescribed ratios of installment values to monthly income as outlined in previous directives from January, March, and November 2016, and to adopt calculation methods for specific occupational categories if documentation cannot be obtained.