The Chinese banking and insurance authority has called for an increase in financial inclusion loans to micro and small enterprise (MSE) loans in 2020.
Li Junfeng (李均锋), chair, of the financial inclusion department of the China Banking and Insurance Regulatory Department (CBIRC), said that the authority would strive to increase MSE financial inclusion loans by 2 trillion yuan (approx. USD$290 million) next year, and increase the number of associated by borrowers by over 3 million.
This increase will build upon a 11.32 trillion yuan MSE loan balance at present, following a push for greater financial inclusion from Beijing.
According to Li growth in MSE loans has exceeded the average rate of growth for other forms of lending, at above 20% for five of the big state-owned banks.
Li said that CBIRC would adopt measures in five areas to support growth in MSE loans in 2020:
- Continue to strengthen supply-side reforms and increase MSE loan supply.
- Use differentiated regulatory policies to drive reform in the internal operating mechanisms of commercial banks.
- Further drive reductions in the cost of financing for MSE’s.
- Further improve lending methods for MSE’s.
- Engage in in-depth cooperation with related departments, continue to drive the construction of platforms for the sharing of enterprise credit information.
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