China’s Financial Inclusion Loans Grow over 20% for Fourth Consecutive Year

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The latest data from the Chinese central bank points to strong growth in financial inclusion loans to small businesses during the outbreak of the Covid pandemic.

“Growth in micro-and-small financial inclusion loans has held above 20% for four consecutive years,” said Ma Jianyang (马贱阳), a senior official from the financial markets department of the People’s Bank of China (PBOC), at a press conference held on 13 January for the release of 2022 financial data.

“In November 2022, the weighted average interest rate for new financial inclusion loans to micro-and-small businesses was at a historic low of 4.9%.

“Due to the impacts of the pandemic, the effective demand for loans and repayment capability of micro-and-small enterprises have all been affected, so maintaining such high growth and achieving these results is not easy. Financial sector support provides a key support and guarantee for micro-and-small enterprises.”

PBOC deputy governor Xuan Changneng (宣昌能) said that in 2023 PBOC will also “effectively deploy preferential policies including financial inclusion micro-and-small support loans; effectively support development of key infrastructure and major projects in energy, transit and water; strengthen financial services for real village revitalisation, and drive a dynamic high-level balancing of effective supply and effective demand.”