The People’s Bank of China (PBOC) has announced that it will further increase the refinancing and re-discounting quota in a bid to better support China’s small and micro-enterprises.
PBOC said that it will increase the quota by 150 billion yuan in order support the ability of Chinese financial institutions to extend credit to small and micro-enteprises and private enterprises.
Those financial institutions whose capital adequacy ratios are sufficient and who satisfy macro-prudential requirements will be able to apply for re-financing and re-discounting with local branches of PBOC if their small and micro-enteprise and private enterprise lending ratios are high enough.
Earlier this year in June PBOC increased the refinancing and re-discounting quota by 150 billion yuan to improve the financing environment for Chinese private enterprise.
The latest increase in the quota arrives just as the State Council flags stronger support for China’s small and medium enterprises and private enterprises, including measures to facilitate bond issuance.