US EUROPE AFRICA ASIA 中文
Business / Economy

Bank head sees more active role for SMEs

By Dong Leshuo (China Daily) Updated: 2016-04-16 10:31

Bank head sees more active role for SMEs

China's central bank governor Zhou Xiaochuan speaks at a press conference in Washington DC, the United States, April 14, 2016. [Photo/Xinhua]

Zhou Xiaochuan, governor of the People's Bank of China, said on Thursday that China would support efforts to develop policy recommendations on diversified financing for small and medium-sized enterprises during China's G20 presidency.

Zhou Xiaochuan made his remarks in welcoming a report from the Organization for Economic Cooperation and Development on SMEs, which was issued in Washington on Thursday before the G20 finance ministers meeting.

"The OECD Scoreboard is a valuable tool to support G20 work, and to monitor trends and the implications of financial reforms for SMEs," Zhou said. "It will not only enrich G20 discussion, but will also provide a reference for G20 policymakers."

China will host the 11th G20 summit, for the first time, in Hangzhou, Zhejiang province, in September.

In China, SMEs made up 97 percent of all companies, accounting for 80 percent of urban employment, and for 60 percent of GDP in 2013, according to the scoreboard.

"SMEs and entrepreneurs can play an active role in achieving stronger and more inclusive growth, and it is now time to show our commitment to enabling the development of alternative funding options," Zhou said.

Angel Gurria, secretary-general of the OECD, said governments are increasingly supporting the development of new SME financing instruments.

"Finance is one of the keys for unlocking the potential of small firms to innovate, upgrade and become more productive," said Gurria. "We still have a lot to do, to create conditions for the diverse population for the SMEs, to access finance in appropriate amount, appropriate forms, appropriate terms."

Zhou said that China is considering a plan that would allow banks to swap bad debt for equity in the company, a plan that may help reduce the debt of large and medium-sized companies that "borrowed too much".

Globally, financing for SMEs has turned the corner from the decline seen during the global financial crisis, but overall credit conditions remain challenging and access to external finance continues to be much tighter for SMEs than larger firms, according to the OECD report.

Hot Topics

Editor's Picks
...