Foreign-invested Banks Issue $1 Billion in Coronavirus Loans, Provide 0.5 Percentage Point Discount

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Foreign-invested banks in China are following Beijing’s call for domestic lenders to step up the provision of financial support to efforts to contain the coronavirus.

As of 18 February 30 foreign-invested and Taiwan-invested banks had issued over 7.4 billion yuan (approx. USD$1.04 billion) in special loans to support efforts to contain the coronavirus or support related enterprise production, according to figures from the China Banking Association (CBA).

According to CBA the loans are being provided at discounts of between 0.5 – 0.75 percentage points on the prevailing interest rate benchmark.

CBA highlighted the contribution made to efforts to contain the impacts of the coronavirus by overseas banks including HSBC, Standard Chartered, Sumitomo Mitsui Financial Group and MUFG Bank.

CBA data further indicates that these banks have provided over 43.5 million yuan in charitable donations, as well as donated 790,000 medical supply goods.

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