The Chinese banking sector saw disproportionately rapid growth in lending to both the manufacturing sector and micro-and-small enterprises (MSEs) in 2022, as regulators push for greater financial inclusion and support for private enterprise.
Figure from the China Banking and Insurance Regulatory Commission (CBIRC) indicate that as of the end of 2022, the total assets of China’s banking-sector financial institutions stood at 379.4 trillion yuan, for a year-on-year (YoY) increase of 10.0%.
CBIRC data for 2022 also highlighted the results of its focus on guiding and supporting the expansion of effective investment in China. As of the end of 2022, CBIRC had overseen the investment of 740 billion yuan via policy and development financial instruments, providing support to more than 2,700 projects. The authority also guided policy and development banks in the deployment of 800 billion yuan in new credit lines, as well as guided commercial banks to follow up with support financing for key projects.
Support for the real economy was a key area of emphasis, with medium and long-term loans to China’s manufacturing industry increasing by 33.8% in 2022.
CBIRC also spurred banking and insurance institutions to increase support for private enterprises and MSEs, as well as reduce the comprehensive financing costs for enterprises.
In 2022, more than half of newly issued corporate loans were provided in private enterprises, while MSE financial inclusion loans increased by 23.6%, and the average interest rate of enterprise loans fell 0.47 percentage points compared with 2021.
Loans to the wholesale and retail sector, transportation, warehousing and postal sector, leasing business service industry, and accommodation and catering industry increased by 7 trillion yuan in total throughout the year.
CBIRC said that in 2023 it will prioritise the recovery and expansion of consumption, effectively provide financing guarantees for investment, continuously optimize financial services for import and export trade, vigorously develop financial inclusion and comprehensively promote rural revitalization.