China’s inclusive loans to small and micro enterprises have been growing at a rapid rate for four consecutive years

2022-06-07 0 By

China News Service Beijing, April 8 (reporter Wang Enbo)China Banking and Insurance Regulatory Commission (CBRC) on Wednesday issued a notice on further strengthening financial support for the development of small and micro enterprises in 2022, requiring the banking sector to continue to realize the growth of inclusive small and micro enterprises loans and the number of households.Official data show that inclusive loans to small and micro businesses in China have grown at a high rate for four consecutive years.By the end of February 2022, the loan balance was 19.67 trillion yuan (RMB, the same below), up 22.16% year on year, 11.15 percentage points higher than the growth rate of all loans;The number of households with loan balances reached 34.5058 million.In the first two months of 2022, the interest rate of newly issued inclusive loans to small and micro enterprises was 5.57%, which has been steadily declining since the first quarter of 2018, and has decreased by 2.24 percentage points cumulatively.As for this year’s work goals, in terms of structure, the notice requires that credit loans account for a continuous increase in the balance of inclusive small and micro enterprises’ loans.Efforts were made to increase the proportion of first-time borrowers among small and micro business borrowers, and the number of new “first-time borrowers” of small and micro business legal persons in large banks and joint-stock banks was higher than that of the previous year.In terms of cost, on the premise of ensuring the incremental expansion of credit, the overall interest rate of new inclusive loans for small and micro enterprises issued by the banking industry will be reduced compared with 2021.The circular details financial service requirements for small and micro enterprises in key areas and weak links.For example, increase medium – and long-term credit to small and micro enterprises in advanced manufacturing and strategic emerging industries, and actively support medium – and long-term capital needs of small and micro enterprises in traditional industries in equipment renewal, technological transformation and green transformation development.To provide appropriate foreign exchange hedging products for small and micro foreign trade enterprises, expand the coverage and scale of export credit insurance for small, medium and micro foreign trade enterprises.The circular stressed that banking and insurance institutions should focus on ensuring employment and people’s livelihood, actively respond to the financial needs of new citizens, self-employed businesses and self-employed people who do not need to apply for business licenses according to law, and improve the equality and convenience of financial services.At the same time, efforts should be made to improve the regional balance of financial resources, especially large banks and joint-stock banks, to lend more credit support to small and micro enterprises in less developed areas.Source: