Chinese banks are preparing to extend copious amounts of credit to assist alleviation and recovery efforts for parts of Henan province stricken by heavy floods, at the behest of the local banking regulator.
Funds for flood relief in Henan province prepared by Chinese banks totalled 81 billion yuan as of 26 July, according to preliminary data from the China Banking and Insurance Regulatory Commission (CBIRC).
Of this amount around 10 billion has already been provided, to areas including flood prevention and disaster relief, hydrological projects, the building of levees as well as urban infrastructure repairs.
On 25 July the Henan province office of CBIRC called for “all banking sector financial institutions to fully support flood prevention, disaster relief and post-disaster reconstruction by actively striving for policy preferences in areas including lending resources, repayment terms and interest rate discounts.”
Big state-owned lender Postal Savings Bank of China (PSBC) has also announced the donation of 20 million yuan to Henan province, to be used for disaster relief and post-disaster reconstruction.