Steps discussed to cut borrowing costs for small companies

The nation's top economic regulator has held a closed-door meeting with major banks to finalize a draft guideline aiming to lower small companies' borrowing costs, according to people familiar with the matter.

The soon-to-be-released document encourages banks to provide more financial support, though some lenders are facing 6 times higher-than-average non-performing loan rates in the inclusive finance sector, the people said. A total of 10 specific measures set to be introduced were discussed during the meeting between the National Development and Reform Commission and major banks, including Industrial and Commercial Bank of China Ltd and Agricultural Bank of China Ltd, they said.

"The overall idea is to provide more support for small enterprises because they are key drivers supporting growth. But, we need to make sure such efforts will not lead to higher financial risks affecting the financial system," said an official with the National Development and Reform Commission.