China moves to beef up lending to small firms
Updated: 2011-11-07 22:25
BEIJING - China has implemented a slew of measures to guide banks to loan more to small and micro-sized enterprises, and 27.9 percent of all outstanding loans by September went to those companies, the country's banking regulator said Monday.
The China Banking Regulatory Commission (CBRC) said that outstanding loans made to small and micro-sized companies totaled 14.75 trillion yuan ($2.33 trillion) by the end of September.
Shang Fulin, the newly-appointed chairman of the CBRC, said Monday that the commission had made a series of policies to support the development of small and micro-sized companies in recent years.
"Effective policy guidance has guaranteed the sustainability of banking services provided to small and micro-sized companies," Shang said.
On October 24, the CBRC revealed a detailed plan to encourage financial support for the country's small and micro-sized enterprises in a supplementary notice to its previous support plan for financing small enterprises.
The supplementary notice ordered commercial banks to give more support to enterprises that borrow less than 5 million yuan and increase tolerance for non-performing loans to small and micro-sized firms.