Large Medium Small |
Wang Jun, lead financial sector specialist at the World Bank, speaks at the 6th China Financial Experts Annual Forum on April 25. [Agencies] |
Microloans amount to several thousand yuan, and they can be repaid in installments.
"For the many micro and small businesses, convenient, speedy and reliable access to loans is more important than the level of lending interest rates....", said Wang Jun, lead financial sector specialist at the World Bank, at the 6th China Financial Experts Annual Forum on April 25.
"Small businesses welcome swift and convenient microloans. Even charged 30 percent annual interest, they are still happy," Wang Jun, World Bank's chief economist, told chinadaily.com.cn April 25.
"Capital on the market is more than sufficient, and needed by small companies, but the lending channels are not efficient," said Liu Kegu, advisor at China Development Bank, at the forum.
"Small companies should be the target of small banking institutions," Liu Kegu said. "Small banks better not think about big scale."
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A bank's market position is sometimes linked to the top executive's position as they are appointed by the local government's top officers. A top executive has to follow local government's instructions, which favor large companies as they contributed a lot in taxes and employment.