The Chinese central bank has just upped the re-loan quota for the support of small businesses, in a bid to improve financing conditions for private enterprise in China.
The People’s Bank of China (PBOC) increased the small business support re-loan quota by 50 billion yuan, bringing the national small business support reloan quota to a record high of 369.5 billion yuan.
According to PBOC’s Financial Times the goal of the increase is to “improve the financing environment for micro and small businesses and private enterprise,” with “focused support for small and medium-sized banks to expand lending towards micro and small businesses and private enterprise, employing the role of targeted irrigation and guiding reductions in the cost of social financing.”
Municipal commercial banks, rural commercial banks, rural cooperative banks, village and county banks and private banks may apply to the local branches of PBOC for small business support re-loan quotas, for the purpose of increasing loans towards MSE’s and private enterprises.
