Bank regulator brew more lending to small companies
China's banking regulator said it is urging banks to put systems in place to ensure loans are being made to small companies, as part of efforts to stimulate the nonState sector of the economy.
The China Banking Regulatory Commission (CBRC) would help set up a system where two to three banks will be contact banks for small enterprises, said Shi Jiliang, a vice chairman of the commission, in a statement posted on the CBRC Web site.
Teams from the contact banks would use their experience from liaising with small companies to develop the lending system and set guidelines for the loans, the regulator said in the statement, which was published over the weekend.
Officials from the CBRC, the Ministry of Finance and industry policymaker the National Development and Reform Commission met with two policy lenders — China Development Bank and Agricultural Development Bank of China — State commercial banks, and some city commercial banks to discuss the issue Friday, the statement said.
Separately, the CBRC said in another statement over the weekend that risks in China’s investment trust sector remained relatively high, citing Tang Shuangning, another CBRC vice chairman.
Tang said the regulator would work to improve and strengthen the sector through tighter supervision on some institutions with high risks, and increase spot investigations.