Why should small loan companies be prohibited from operating across regions?

On June165438+1October 2 1, the Office of the Leading Group for the Special Remediation of Internet Financial Risks issued an emergency document "Notice on Immediately Suspending the Examination and Approval of Internet Small Loan Companies" (hereinafter referred to as the "Notice"), requiring the regulatory authorities of small loan companies at all levels not to approve new networks from now on.

According to the notice, in recent years, some regions have successively approved the establishment of online microfinance companies or allowed them to carry out online microfinance business, and the "cash loan" business carried out by some institutions has great risks. for

Implement the spirit of the instructions of the leading comrades of the State Council, and conduct business in the office of the small team for the special rectification of online loan risks. From now on, the supervision departments of small loan companies at all levels shall not set up new online (Internet) small loan companies, and prohibit new batch of small loan companies from carrying out small loan business across provinces (autonomous regions and municipalities).

It's long overdue for rectification, and now it's too messy.