China Banking Regulatory Commission, Guidelines for Risk Management by Commercial Banks of Loans Extended for Mergers and Acquisitions

Issued: February 10 2015
Effective: as of date of issuance

Main contents: The Guidelines extend the term for acquisition loans from five years to seven years (Article 22); increase the acquisition loan percentage, increasing the percentage of the acquisition transaction amount they account for from 50% to 60% (Article 21); and convert the mandatory provisions addressing the provision of security into provisions of principles, and remove the requirement that conditions for the provision of security be more stringent than those for other types of loans (Article 29).

Repealed legislation: Guidelines for Risk Management by Commercial Banks of Loans Extended for Mergers and Acquisitions