China’s banking regulator has highlighted the scale of financial relief policies deployed in 2020 as part of efforts to mitigate the adverse economic impacts of the COVID-19 pandemic.
At its inaugural 2021 work meeting held on 26 January, the China Banking and Insurance Regulatory Commission (CBIRC) revealed that a total of 5.3 trillion yuan in special emergency credit bonds were issued in 2020 to ensure the smooth functioning of the Chinese finance system during efforts to contain the spread of COVID-19.
Chinese banks deferred 6.6 trillion yuan in capital and interest payments for loans taken by micro, small and medium-sized enterprises and foreign trade enterprises, as well as issued 24.27 billion yuan in emergency response loans.
Renminbi loans saw a full year increase of 19.6 trillion yuan in 2020, for a YoY rise of 12.8%. Growth in financial inclusion micro and small-loans exceeded growth in all lending by 18.1 percentage points, while financial inclusion lending by China’s big five state-owned backs increased by 54.8%.
China’s banking sector disposed of 3.02 trillion yuan in non-performing assets in 2020, bringing the total amount of NPL’s disposed of during the period from 2017 to 2020 to more than the total for the preceding 12 year period.
CBIRC issued 3178 penalties to institutions and 4554 penalties to individuals in 2020, for a total penalty amount of 2.28 billion yuan.
CBIRC also highlighted eight key work missions for 2021 at its inaugural work meeting for the year, including:
- Providing vigorous support to the establishment of new development conditions.
- Further raising the overall efficiency of financial services.
- Not the slightest relent in the prevention and resolution of financial risk.
- Vigorously standardising and rectifying key operations.
- Pragmatically strengthening regulation of Internet platform financial activities.
- Continuing to deepen financial sector supply-side structural reforms.
- Continuing to raise corporate governance and internal control levels.
- Strengthen the development of regulatory capability.