MYbank to release USD 282 bln lending plans during pandemic

Wednesday 6 May 2020 14:32 CET | News

Online lending platform MYbank, backed by Jack Ma, has planned to issue USD 282 billion worth of loans to small- and medium-sized companies in 2020.

As China’s coronavirus outbreak neared its peak, MYbank had to decide whether to reduce its exposure or keep releasing loans. The company agreed with 25 partner banks on a strategy to cut interest rates and release unprecedented amounts of loans.

The lending surge aligns with the Chinese government’s efforts to revive the China’s economy from its pandemic-induced slump. However, it also involves a certain amount of risk for MYbank and its shareholders, including Ma’s Ant Financial.

The pandemic will test MYbank’s loan algorithms, which are designed for real-time payments and to evaluate borrowers that often lack collateral and credit histories. If the push to boost lending causes defaults to jump, it could affect Ant’s USD 150 billion valuation and hamper plans for an eventual initial public offering, online publication Caixin added.

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Keywords: MyBank, pandemic, online lending platform, Jack Ma, SME, China, lending surge, Ant Financial, loan algorithms, real time payments
Categories: Banking & Fintech
Countries: China
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Banking & Fintech

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