23 Chinese Banks Reduce Interest Rates for Business Loans During Coronavirus Outbreak

142

A new report indicates that the vast majority of Chinese banks are heeding Beijing’s call for the adoption of measures to ease the financing difficulties of small businesses during efforts to contain the spread of the novel coronavirus.

The “Government & Bank Statistical Report on Disease Resistance and Reconstruction and Assisting the Development of Small and Medium-sized Enterprises” (政府&银行“抗疫重建,助力中小企业发展”统计报告) scrutinised the policies of 36 Chinese banks for helping enterprises and individuals to weather the impacts of the novel coronavirus.

Banks examined by the report included China’s big six state-owned banks, as well as nine joint-stock banks and 21 municipal commercial landers.

The report found that 23 banks are providing preferential interest rates to enterprises impacted by the coronavirus, with an especial focus on small businesses, those situated within Hubei province or other areas hardest hit by the spread of the disease, as well as companies that produce relevant medical supplies.

These banks include:

  1. Bank of China
  2. Agricultural Bank of China
  3. ICBC
  4. China Construction Bank
  5. Bank of Communications
  6. Postal Savings Bank of China
  7. China CITIC Bank
  8. China Minsheng Bank
  9. Huaxia Bank
  10. China Everbright Bank
  11. Shanghai Pudong Development Bank
  12. China Guangfa Bank
  13. Bank of Beijing
  14. Bank of Shanghai
  15. Bank of Jiangsu
  16. Bank of Hebei
  17. Bank of Chengdu
  18. Bank of Ningbo
  19. Bank of Chongqing,
  20. Bank of Qingdao
  21. AiBank
  22. Bank of Bohai
  23. Bank of Guizhou.

A total of 28 banks have also relaxed repayment terms for patients, front-line medical staff or people who have lost sources of income as a result of the coronavirus.

These lenders have indicated that they will not views late payments arising due to the impacts of the coronavirus as loan defaults, or include them in the credit records of customers, and include:

  1. Agricultural Bank of China
  2. China Construction Bank
  3. Bank of Communications
  4. Bank of China
  5. ICBC
  6. Postal Savings Bank of China
  7. China CITIC Bank
  8. China Everbright Bank
  9. Shanghai Pudong Development Bank
  10. China Guangfa Bank
  11. Ping An Bank
  12. Z-Bank
  13. Bank of Beijing
  14. Bank of Shanghai
  15. Bank of Hebei
  16. Bank of Chengdu
  17. Huishang Bank
  18. Bank of Ningbo
  19. Zhongyuan Bank
  20. Bank of Chongqing
  21. Bank of Qingdao
  22. Bank of Gansu
  23. AiBank
  24. Bank of Bohai
  25. Bank of Guizhou
  26. Fudian Bank
  27. China Zheshang Bank
  28. Bank of Weifang.

Four of China’s big state-owned banks have committed to providing various forms of free insurance services to front-line medical staff participating in disease containment efforts.

These banks include the Agricultural Bank of China, China Construction Bank, Bank of China and ICBC.

The adoption of these policies by Chinese banks arrives following repeated calls from Beijing for the financial sector to make a concerted effort to help China’s economy weather the impacts of the novel coronavirus.

On 1 February the Chinese central bank led the release of the “Notice Concerning Further Strengthening Financial Support for the Prevention and Control of the Novel Coronavirus Infectious Pneumonia” (关于进一步强化金融支持防控新型冠状病毒感染肺炎疫情的通知).

The Notice called for the adoption of a range of measures to ameliorate the financial and economic difficulties of individuals and businesses during the outbreak of the coronavirus, including adjustments to repayment arrangements and the deferral of repayments for people who have temporarily sources of income.

Related stories

Chi­na’s Bank­ing Reg­u­la­tor Calls for Com­pre­hen­sive Re­duc­tion to Fi­nanc­ing Costs for Mi­cro En­ter­prises Dur­ing Coro­n­avirus Out­break

Chi­nese Cen­tral Bank Of­fers 300 Bil­lion in Funds to Key En­ter­prises Com­bat­ting Coro­n­avirus via Re-lend­ing Scheme

Chi­nese Banks Pro­vide $33.76 Bil­lion in Lend­ing Sup­port to Coro­n­avirus Con­tain­ment Ef­forts

LEAVE A REPLY

Please enter your comment!
Please enter your name here