The China Banking and Insurance Regulatory Commission (CBIRC) has outlined its key work tasks for 2020 at a recently convened meeting.
CBIRC’s “2020 Full Year Banking and Insurance Sector Regulatory Work Meeting” (2020年全国银行业保险业监督管理工作会议) said that three focal themes for work in 2020 would include:
- Firmly winning the war for the prevention and dissolution of financial risk.
- Vigorously undertaking work in relation to the Six Stabilities; driving increases in the quality and efficiency of financial services for the real economy, guiding more funds towards key areas and weak links, further driving a 0.5 percentage point reduction in micro and small-enterprise financing costs, and maintaining the pace of growth of such loans above average growth in all loans.
- Comprehensively deepening financial sector supply-side structural reforms, raising the level fo external opening.
Other areas of emphasis highlighted by the CBIRC work meeting included:
- Ensuring that “houses are used for occupation and not speculation,” and strictly preventing the illicit flow of funds into the real estate market.
- Strengthening financial support for social services.
- Strengthening financial services for private enterprise – and private manufacturing enterprises in particular.
- Implementation of financial policy measures to support live pork production.
- Vigorously develop green finance, and launch a batch of financial products that are beneficial for environmental protection.
- Improve market-based mechanisms for the pricing of vehicle insurance.
According to data from CBIRC renminbi loans increased by 17 trillion yuan in 2019, for a widening of 1.1 trillion yuan compared to 2018.
Total private enterprise loans increased by 4.25 trillion yuan, while the financial inclusion micro-and-small enterprise (MSE) loan balance was 11.6 trillion yuan, for a YoY rise of 25%.
The financial inclusion MSE loans of China’s big five state-owned banks increased by 55% in 2019, while the integrated financing costs of MSE loans fell by over 1 percentage point.