CBIRC to Strengthen Supervisory and Policy Support for SME Services
CBIRC released a notification on strengthening supervision and guidance to enhance the quality and efficiency of financial services for "small and micro-enterprises" (SMEs). The notification details measures taken and planned to alleviate the financing difficulties of small and micro-enterprises, provides overall situation of financial services for small and micro enterprises, and discusses the next steps to enhance quality and efficiency of financial services for small and micro-enterprises.
CBIRC highlighted that non-performing loan ratio is controlled at a reasonable level. The efficiency of small and micro enterprises in banking services has been continuously improved. Many banks use digital technology extensively by identifying effective financing needs, optimizing risk management, and providing convenient online financing services for small and micro enterprises through the online channels. As part of the next steps, the regulator will adhere to the deepening of the structural reform of the financial supply side, improve financial services coverage, increase structural cost reduction, regulate bank service charges, continuously improve the internal operation mechanism of the bank, guide the bank to refine the credit due diligence, promote the transformation of commercial bank loan methods, urge banks to improve their risk management capabilities, focus on reviewing the first source of repayment, reduce excessive reliance on collateral, gradually increase the proportion of credit loans, and improve the promotion of loan renewing business.
CBIRC also intends to promote the establishment of a sound credit information-sharing mechanism, promote the improvement of the use of tax-related data in online direct connection, and provide financial services for small and micro enterprises. The “silver tax interaction” model is used to make good use of the national credit information-sharing platform and international trade. The regulator will develop a long-term mechanism for supervision and evaluation, study and formulate the evaluation system for financial services supervision of small and micro enterprises, comprehensively evaluate the work of small and micro enterprises in banking services, and form a systematic, institutionalized, and standardized assessment and evaluation mechanism. CBIRC will guide banking financial institutions to serve small and micro enterprises.
Related Link (in Chinese): Notification
Keywords: Asia Pacific, China, Banking, Small and Micro Enterprises, NPLs, Credit Risk, CBIRC
Related Articles
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023
