Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    Small banks asked to increase SME funding

    By Jiang Xueqing and Ma Si | China Daily | Updated: 2020-02-28 09:05
    Share
    Share - WeChat
    Employees work on the production line of an electronics company in Qingdao, Shandong province, on Wednesday. [Photo by Yu Fangping/For China Daily]

    PBOC mulls re-lending program, capital replenishment, low-cost funds

    China will use various policy measures such as the re-lending program and capital replenishment instruments to encourage small-and medium-sized banks to give small businesses stronger credit support, a central bank official said on Thursday.

    "The People's Bank of China, the central bank, will continue to provide small-and medium-sized banks with low-cost funds through its special re-lending program, so that they will step up lending to small businesses," said Liu Guoqiang, vice-governor of the PBOC, at a news conference held by the State Council Information Office.

    The central bank will also help small commercial lenders improve lending capacity by launching policies that will allow them to use various methods to replenish capital, he said.

    China cut the one-year interest rate on re-lending funds that aim to help agribusiness and small businesses by 0.25 percentage point to 2.5 percent. After getting the re-lending funds at a favorable rate, small commercial lenders will issue loans to small businesses at a rate of no more than 4.55 percent. The spread between the two interest rates is 205 basis points.

    Apart from providing low-cost funds to small banks, the central bank will also urge commercial lenders to increase support for small businesses by implementing policies under China's Macro Prudential Assessment framework, Liu said.

    For those banks that meet regulatory requirements on providing inclusive financial services, the central bank will implement targeted cuts in the reserve requirement ratio in a timely and appropriate manner, he said.

    Currently, the capital adequacy ratio of China's small-and medium-sized banks is around 12 percent to 13 percent, and their liquidity coverage ratio is more than 100 percent. These indicators show that small banks are capable of providing further financial support to small businesses, said Xiao Yuanqi, chief risk officer and spokesperson of the China Banking and Insurance Regulatory Commission.

    However, considering that it will take a while for people to see the real impact of the epidemic on small regional banks, monetary policy makers and financial regulators have to take proactive measures to improve small banks' capability of further supporting small businesses, Xiao said.

    More targeted measures will be rolled out to solve the problems faced by small-and medium-sized enterprises, so as to better help them resume work, as part of the nation's broader push to fight against an outbreak of novel coronavirus pneumonia, China's top market regulator said.

    Tang Jun, deputy head of the State Administration for Market Regulation, said online surveys and field investigations show that SMEs are facing some difficulties in resuming work. Some of them do not have sufficient working capital.

    "Although they have not restarted operation, they still have to pay for rents and utilities every month, which in some cases could account for as much as 50 percent of total costs of small businesses," Tang said.

    China will make more efforts to encourage local governments to come up with targeted measures, such as offering rent discounts and lowering utility payments, to help SMEs and self-employed people, he said.

    The country's small-and medium-sized corporate legal entities formed the most dynamic entrepreneurial group and an important foundation for China's real economy, the part of the economy that produces goods and services, said Zhang Kejian, vice-minister of industry and information technology.

    More than 30 percent of them have restarted work so far, Zhang said.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    天堂√最新版中文在线| 精品国产一区二区三区无码| 99久久无码一区人妻a黑| 一级片无码中文字幕乱伦| 毛片一区二区三区无码| 人妻中文字系列无码专区| 高清无码中文字幕在线观看视频| 无码AV大香线蕉| av无码久久久久久不卡网站| 一本加勒比HEZYO无码人妻| 最近中文字幕完整版资源| 中文字幕日本人妻久久久免费| 国产日韩精品无码区免费专区国产| 中文字幕无码日韩专区| 久久中文字幕无码专区| 91中文字幕yellow字幕网| 中文字幕无码一区二区三区本日 | 久久无码AV中文出轨人妻| 日韩精品无码一区二区三区免费| 人妻AV中出无码内射| 中文自拍日本综合| 天堂网www中文在线资源| 最近完整中文字幕2019电影 | 最近中文字幕大全中文字幕免费 | 亚洲国产精品狼友中文久久久| 视频二区中文字幕| 无码AV中文一区二区三区| 精品久久人妻av中文字幕| 中文午夜乱理片无码| 人妻少妇精品中文字幕AV| 人妻少妇精品中文字幕AV | 再看日本中文字幕在线观看| 久久久久综合中文字幕| 最近更新2019中文字幕| 亚洲精品99久久久久中文字幕 | 亚洲中文字幕无码久久综合网| 久久无码AV一区二区三区| 夜夜添无码试看一区二区三区| 亚洲成AV人片在线播放无码| 无码精品久久久久久人妻中字| 成人无码精品1区2区3区免费看|