CBIRC issued a notice on further enhancing the quality and efficiency of financial services for "small and micro-enterprise (SME)" in 2019. The notice revolves around the guiding ideology of effectively increasing the proportion of bank credit in the total financing of SMEs and the overall decline of financing costs for SMEs. In terms of risk management and control, under the premise that the credit risk of SMEs is generally controllable, the tolerance rate of non-performing loans (NPLs) of inclusive SMEs will be relaxed to no more than 3 percentage points. As of the end of 2018, the national loan balance of SMEs was CNY 33.49 trillion, accounting for 23.81% of all loans.
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Keywords: Asia Pacific, China, Banking, SME, NPLs, Risk Management, CBIRC
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