Regulators, banks seeking to reform small business loans

Effective risk management key to making micro-financing commercially sustainable

Governments and commercial banks at all levels must join forces to explore various measures to make small business loans and financing commercially sustainable, to which effective risk management is the key, said China's banking and insurance regulatory officials.

"If the nonperforming loan ratios of bank lending to micro and small enterprises are high, banks cannot sustain this area of business, so lowering risks is the most crucial part of the financial reform of small business loans," said Cao Guangqun, Party secretary of the China Banking and Insurance Regulatory Commission's office in Taizhou, Zhejiang province.