China’s Banking Regulator Calls for Comprehensive Reduction to Financing Costs for Micro Enterprises During Coronavirus Outbreak
The China Banking and Insurance Regulatory Commission (CBIRC) has called for the Chinese financial sector to reduce the cost of funds for micro-and-small enterprises (MSE).
CBIRC recently issued the “China Banking and Insurance Regulatory Commission Notice on Further Effectively Performing Disease Prevention and Control Financial Services” (中国银保监会办公厅关于进一步做好疫情防控金融服务的通知) via its official website.
The Notice calls for financial institutions to “actively help and support micro-and-small enterprises and individual industrial and commercial registrants that meet with difficulty,” as well as raise their share of lending to MSE’s and further reduce their “comprehensive financing costs.”
“All banking institutions must optimise lending procedures, rationally extend loan terms, effectively reduce costs and rates, and support the orderly and high-efficiency resumption of operations by impacted enterprises,” said CBIRC.
CBIRC called for financial institutions to make adjustments to repayments arrangements for MSE’s, as well as the provision of appropriate reductions in interest rates for loans.