CBIRC to Further Promote Development of Financial Services for SMEs

The notice sets out the following considerations to promote development of financial services for small and micro enterprises in 2021: 

• Inclusive small and micro enterprise loans need to continue to achieve the goal of "two increases" in terms of growth rate and number of households throughout the year. Five large banks must strive to achieve an annual growth of more than 30% in inclusive small and micro enterprise loans. 
• Institutions need to continue to increase the initial loan, renewal, and credit loans of small and micro enterprises and to focus on increasing independent and controllable medium and long-term credit support for advanced manufacturing, strategic emerging industries, and industrial chain supply chains. 
• Institutions need to encourage the deepening of the bancassurance cooperation mechanism and explore and innovate insurance policy financing products for small and micro enterprises under the premise of controllable risks. 
• Banking financial institutions should further improve their internal mechanisms and systems against the financial service supervision and evaluation indicators of commercial banks for small and micro enterprises.
• Banking financial institutions need to be encouraged to use credit asset securitization and direct transfer of credit assets under the premise of legal compliance and risk control to revitalize their credit stocks and use them to continuously extend loans to small and micro enterprises. 

Related Links (in Chinese)

• Press Release
• Notice

Keywords: Asia Pacific, China, Banking, Insurance, Small and Micro Enterprises, Credit Risk, SME, CBIRC