23 Chinese Banks Reduce Interest Rates for Business Loans During Coronavirus Outbreak

A new report indicates that the vast majority of Chinese banks are heeding Beijing’s call for the adoption of measures to ease the financing difficulties of small businesses during efforts to contain the spread of the novel coronavirus.

The “Government & Bank Statistical Report on Disease Resistance and Reconstruction and Assisting the Development of Small and Medium-sized Enterprises” (政府&银行“抗疫重建，助力中小企业发展”统计报告) scrutinised the policies of 36 Chinese banks for helping enterprises and individuals to weather the impacts of the novel coronavirus.

Banks examined by the report included China’s big six state-owned banks, as well as nine joint-stock banks and 21 municipal commercial landers.

The report found that 23 banks are providing preferential interest rates to enterprises impacted by the coronavirus, with an especial focus on small businesses, those situated within Hubei province or other areas hardest hit by the spread of the disease, as well as companies that produce relevant medical supplies.

These banks include:

1. Bank of China
2. Agricultural Bank of China
3. ICBC
4. China Construction Bank
5. Bank of Communications
6. Postal Savings Bank of China
7. China CITIC Bank
8. China Minsheng Bank
9. Huaxia Bank
10. China Everbright Bank
11. Shanghai Pudong Development Bank
12. China Guangfa Bank
13. Bank of Beijing
14. Bank of Shanghai
15. Bank of Jiangsu
16. Bank of Hebei
17. Bank of Chengdu
18. Bank of Ningbo
19. Bank of Chongqing,
20. Bank of Qingdao
21. AiBank
22. Bank of Bohai
23. Bank of Guizhou.

A total of 28 banks have also relaxed repayment terms for patients, front-line medical staff or people who have lost sources of income as a result of the coronavirus.

These lenders have indicated that they will not views late payments arising due to the impacts of the coronavirus as loan defaults, or include them in the credit records of customers, and include:

1. Agricultural Bank of China
2. China Construction Bank
3. Bank of Communications
4. Bank of China
5. ICBC
6. Postal Savings Bank of China
7. China CITIC Bank
8. China Everbright Bank
9. Shanghai Pudong Development Bank
10. China Guangfa Bank
11. Ping An Bank
12. Z-Bank
13. Bank of Beijing
14. Bank of Shanghai
15. Bank of Hebei
16. Bank of Chengdu
17. Huishang Bank
18. Bank of Ningbo
19. Zhongyuan Bank
20. Bank of Chongqing
21. Bank of Qingdao
22. Bank of Gansu
23. AiBank
24. Bank of Bohai
25. Bank of Guizhou
26. Fudian Bank
27. China Zheshang Bank
28. Bank of Weifang.

Four of China’s big state-owned banks have committed to providing various forms of free insurance services to front-line medical staff participating in disease containment efforts.

These banks include the Agricultural Bank of China, China Construction Bank, Bank of China and ICBC.

The adoption of these policies by Chinese banks arrives following repeated calls from Beijing for the financial sector to make a concerted effort to help China’s economy weather the impacts of the novel coronavirus.

On 1 February the Chinese central bank led the release of the “Notice Concerning Further Strengthening Financial Support for the Prevention and Control of the Novel Coronavirus Infectious Pneumonia” (关于进一步强化金融支持防控新型冠状病毒感染肺炎疫情的通知).

The Notice called for the adoption of a range of measures to ameliorate the financial and economic difficulties of individuals and businesses during the outbreak of the coronavirus, including adjustments to repayment arrangements and the deferral of repayments for people who have temporarily sources of income.

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