China to offer more financial support for micro, small enterprises
By Shang Kaiyuan from
People’s Daily
Financial support for
micro and small, as well as private enterprises is the most important part of
supply-side structural reform in the financial sector, according to Guo
Shuqing, chairman of the China Banking and Insurance Regulatory Commission
(CBIRC).
Guo made the remarks when
giving an interview after the opening meeting of the second session of the 13th
National People's Congress at the Great Hall of the People in Beijing on Mar.
5.
Calling the financing
difficulty and the high financing cost for micro and small enterprises a tough
challenge of the world, Guo made high
evaluation on China’s efforts in this regard.
There are 4,588 financial
organizations in China’s banking industry, he introduced, adding that major
banks’ share in the industry was reduced to around 38 percent from over 50
percent over the past decade.
The fall of share of major
banks was a synchronous process with the expanding number of small- and
medium-sized banks whose businesses were more tailored for micro and small
enterprises, Guo noted.
In addition, major banks,
including five largest State-owned commercial banks and 12 joint-stock
commercial banks, have all established inclusive finance departments to provide
financial services specifically for micro and small enterprises, he said.
Reports confirmed that by
the end of 2018, China witnessed a 21.8-percent growth from the year beginning
in the inclusive loans for micro and small enterprises
with a total credit line not exceeding 10 million yuan ($1.5 million) for
each borrower. “It’s indeed a high growth,” Guo noted.
According to this year’s
government work report, state-owned banks are
requested to grant 30 percent more of the loans to small and micro businesses,
which is an approachable target in Guo’s view.
Chinese banks have made
effective explorations on how to acquire sufficient information before offering
loans to private, as well as micro and small enterprises, a big challenge for
many financial institutions, Guo introduced.
Thanks to the application
of big data and internet, some banks are able to respond quickly to lending
demands and keep a low ratio of non-performing loans (NPL). For instance, the
NPL ratio of China Construction Bank was kept at only round 1 percent. In
addition, the leading online private commercial bank MYbank was also keeping a
low NPL ratio, Guo said.
“We will further share and
promote these experiences among banks of all sizes, and take more measures to
support the development of the private, as well as micro and small businesses,”
Guo remarked.
As supply-side structural
reform deals with many aspects, insurance and security sectors also need to
carry out bold innovation to offer more financial support for the private
sector, and micro and small enterprises, Guo stressed.
Guo Shuqing,
chairman of the China Banking and Insurance Regulatory Commission receives an
interview after the opening meeting of the second session of the 13th National
People's Congress at the Great Hall of the People in Beijing on Mar. 5.
(Photoby People’s Daily Online)
China to offer more financial support for micro, small enterprises
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