Personal loans are on track to become a $15.6 billion industry by 2035, according to the B.C. government.
The B.N.T.O. said the government will create a new provincial personal loan industry regulator and set up a program to collect on loans.
“We are looking to develop an industry regulator that will collect on the loans of BC consumers and set standards for loan performance,” B.A.O., Consumer Services and Consumer Affairs spokesperson Stephanie Smith said in an emailed statement.
“The regulatory framework for the industry will be set by the government.”
The Banc of Canada and other lenders have been lobbying for a new consumer loan regulator.
In April, BancOfCanada President and CEO Steve Bouchard told CBC News he’s hopeful the regulator will help spur the growth of personal loans.
“I think it’s important to have a regulator that can manage the risks associated with the industry,” he said.
“When we look at consumer loans, I think we need a consumer lending regulator that is able to manage the risk associated with it.”
Smith said the regulator would be able to set loan standards, and could charge borrowers interest rates that are lower than the industry average.
Banc of America, which has lobbied hard for a regulator, said it was concerned the regulator could be set up by the Bancor Corp., which is owned by Chinese investors.
The government has set aside $10.5 billion to help the industry recover from the BNP Paribas scandal, which led to the sale of BNP to Banco Santander SA.
Banks have been looking for a way to get money back from consumers who lost money when their personal loans were purchased by a private company.
“In a normal business environment, we would like to make sure that the customers we serve are in the best position to recover their money,” Smith said.
“We are working to find ways to get that money back.”
She said the BNB is reviewing its business model.
“If we were to take this forward, we’d be looking at ways to make it better and better,” Smith added.
The new regulator will have authority over loans under the BCLIA, which governs the financial services industry, but it’s unclear how it will be regulated by the regulator.
“There is still a lot of work to be done in that process,” said Bill Miller, a senior director with Bancorp’s personal lending division.
He said BancofAmerica is currently working with the BNOC and other lending organizations to get the new regulator up and running.
“There is no timeline at this time, but we hope to get it up and operational in the next few months.”
In its statement to CBC News, the Banca Monte dei Paschi di Siena said it would not comment on the Binance announcement.
The BCLIPO’s mandate includes establishing standards for consumer loans and collecting on the outstanding loans of borrowers.
The regulator will be charged with regulating and enforcing the standards, according the BCLI.
The Bancorporation of British Columbia and the BNSF Banking Corporation are members.