China Business Video - China's inclusive loans to small, micro enterprises continues to rise in 2020
China's inclusive finance to small and micro firms maintained robust development in 2020, with combined loans topping 15 trillion yuan (2.32 trillion U.S. dollars), according to latest data from the China Banking and Insurance Regulatory Commission (CBIRC).
The figure represented a 32 percent year on year, the CBIRC data showed.
The number of small and micro enterprises with loans in the country has reached 25.4 million, 4.45 million more than the early 2020, according to the data.
"Bank loans to small and micro companies have a combined value of over 15.09 trillion yuan (about 232 billion U.S. dollars) in the inclusive finance channel, up 32 percent (year on year). Among them, the five major banks actually grew even faster at nearly 59 percent," said Li Junfeng, director of financial inclusion department of CBIRC.
The lending rates of small and micro company loans have been lowered by another 0.82 percentage points in 2020, based on the consecutive reduction in 2018 and 2019. The target of China's financial system on making 1.5 trillion yuan interest rate concessions throughout 2020 was fulfilled.
Li said that CBIRC will move forward to guide banks to optimize the industrial structure of small and micro company loans, particularly to beef up support for companies in the technological and manufacturing sectors.
The regulatory authorities will also continue to regulate the charging behaviors of financial institutions this year, so as to stably bring down financing costs of small and micro companies.
Inclusive finance covers financial institutions' services for small businesses, farmers, those on low-incomes, the disabled and senior citizens.
China's top banking and insurance regulator has vowed to ensure greater support in terms of inclusive financing services for the country's small businesses amid efforts to boost the real economy.