Postal Savings Bank of China Steps up Micro-Enterprise Lending


Big state-owned lender Postal Savings Bank of China (PSBC) has launched its own campaign to boost financial inclusion and lending to Chinese small businesses in response to moral suasion from the Chinese central government.

PSBC recently issued the “Postal Savings Bank of China Implementation Plan for Driving and Establishing Long-term mechanisms for Financial Services to Dare, Be Willing and Be Capable of Lending to Micro-and-Small Enterprises” (中国邮政储蓄银行关于推动建立金融服务小微企业敢贷愿贷能贷会贷长效机制的落实方案).

The release of the Plan arrives in response to arrangements made by the Chinese Communist Party (CCP) central committee and the State Council to stabilise economic growth and shore up the health of market entities.

According to PSBC the Plan encompasses a total of 19 specific measures, designed to “continually raise the willingness, ability and sustainability of providing financial services to micro-and-small enterprises,” as well as to “use financial services to help stabilise market entities, stabilise employment and entrepreneurship, and stabilise economic growth.”

These measures include:

  • Strengthening positive incentives and assessments
  • Fully stimulating the willingness to make loans
  • Strengthening top-level design of financial inclusion strategies
  • Further optimising the development of internal systems mechanisms
  • Providing incentive mechanisms for internal funds transfer pricing (FTP)
  • Improving cost and revenue sharing mechanisms
  • Improving differentiated pricing mechanisms.