China’s banking regulator has set a fresh target for growth in manufacturing loans made by big state-owned banks in 2020, amidst efforts by Beijing to keep the Chinese economy afloat in the wake of the COVID-19 pandemic.
The China Banking and Insurance Regulatory Commission (CBIRC) has set a target of full year growth in manufacturing sector loans of no less than 5% for large-scale banks in 2020.
By the end of the year CBIRC wants the manufacturing sector’s share of medium and long-term loans to rise by one percentage point compared to the start of the year, and growth in the manufacturing sector credit loan balance of no less than 3%.
CBIRC said to domestic press that it hopes to “expand the vigour of support for the manufacturing sector and strengthen financial support for advanced manufacturing, hi-tech manufacturing and strategic emerging industries.”
With regard to regulatory assessments, CBIRC has formulated a total of nine qualitative and quantitative indices covering areas including bank policy, product innovation, risk control and internal assessment.
In the first quarter of 2020 new manufacturing sector loans totalled 1.1 trillion yuan, already exceeding the full year increase for 2019.
Hi-tech manufacturing sector loans increased by 275.3 billion yuan compared to the start of the year, while medium and long-term manufacturing sector loans saw an increase of 295.8 billion yuan.