Taiwan's Financial Supervisory Commission approved guidelines on collaboration between peer-to-peer lending platforms and commercial banks, the Taipei Times reported Dec. 11, citing the commission.
Under the guidelines, lenders may provide custodian and trust account services to P2P platforms, as well as transaction processing facilities to meet rules against collection of deposits by nonbank entities. The banks will also be authorized to offer credit information and risk modeling for newly-established P2P platforms upon permission from borrowers.
Further, P2P operators may ask clients to furnish credit reports from the Joint Credit Information Center.
However, banks are prohibited from making recommendations on decisions regarding loan approval, interest rates and principal amounts.
The guidelines also regulate peer-to-bank, or P2B, models, where banks take part as lenders on P2P platforms, Banking Bureau Deputy Director General Sherri Chuang said in a news conference.
Banks planning to enter the P2B business must file an application with the commission, she added.
