'Sweeteners' to bring more funds to rural enterprises

Financial institutions may get incentives for extending loans to smaller businesses

The nation's monetary authorities on Wednesday pledged to offer the country's financial institutions more incentives to encourage them to lend to rural clients despite the increase in rural bad loan ratios.

Lu Lei, head of the research bureau at the People's Bank of China, the central bank, said greater coordination of monetary and fiscal policies is needed to boost bank lending to small rural enterprises, which could generate new business opportunities that might have been overlooked by the big financial institutions.