Shenzhen Banking Authority Commits to Expanding Financial Inclusion for Micro Enterprises in 2022

98

Shenzhen’s banking and insurance authority has committed to expanding financial accessibility for small businesses in the municipality.

On 23 February the authority said to state-owned media that in 2022 it would “fully support the stabilisation of foreign trade growth, and further increase the volume, expand the area and reduce the price of financing for micro, small and medium-size enterprises.”

As of the end of 2021 Shenzhen’s financial inclusion micro-and-small enterprise loan balance was 1.1 trillion yuan, for year-on-year (YoY) growth of 30.07%.

In 2022 Shenzhen’s banking authority will also “make use of financial products innovation to better service key technology enterprises, provide funding support for green development, and strengthen financial services for the people’s livelihood.”

In terms of regulatory work in 2022, the authority said that it would “appropriately dispose of financial sector risk, resolutely defend the bottomline against the onset of systemic financial risk, and uphold the position that houses are for occupation and not speculation.”

As of the end of 2021 Shenzhen’s banking sector had total assets of 11.27 trillion yuan, for YoY growth of 7.83%. Its deposit balance was 7.86 trillion yuan, for YoY growth of 7.1%, while its loan balance was also 7.86 trillion yuan, for YoY growth of 13.85%.

The non-performing loan ratio of Shenzhen’s banking sector was 1.52% at the end of 2021, holding steady with the reading for the end of 2020. The average capital adequacy ratio of Shenzhen legal person banks was over 14.3% at the end of 2021, while the average loan provision ratio was 2.96%, and the average provisions coverage ratio was 194.5%.