Regulatory Alerts2021-02-02
Consumer Credit Management Directive No. 311A
The Banking Supervision Department issued Directive No. 311A to establish comprehensive standards for the fair and transparent management of consumer credit by banking corporations. The directive mandates robust organizational governance, requiring boards to oversee credit strategies and management to implement policies that assess borrower repayment ability and prevent aggressive marketing practices. It further enforces strict underwriting procedures, limits initiated marketing to designated areas with mandatory cooling-off periods, and prohibits soliciting disadvantaged populations to mitigate conduct risk and excessive household indebtedness.
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