China’s Financial Inclusion Report Points to 14.27% Rise in Micro and Small Enterprise Loans in 2019


A new report from the Chinese central government on the results of financial inclusion policy point to a sizeable increase in lending to micro and small-enterprise (MSE) loans since the start of the year.

The “2019 China Financial Inclusion Development Report” (2019年中国普惠金融发展报告) jointly released by the China Banking and Insurance Regulatory Commission (CBIRC) and the People’s Bank of China (PBOC) indicates that as of the end of June the national MSE loan balance stood at 35.63 trillion yuan.

The inclusion-model MSE loan (普惠型小微企业贷款) balance was 10.7 trillion yuan, for an increase of 14.27% since the start of the year, 7.14 percentage points ahead of growth in all forms of lending.

In the first half of 2019 the average interest rate for new financial inclusion MSE loans was 6.82%, for a decline of 0.58 percentage points compared to the full year average for 2018.

The national financial inclusion MSE loan non-performance rate was 3.75%, for a decline of 0.43 percentage points compared to the start of the year.