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QINGDAO TODAY
在线翻译:
szdaily -> Business -> 
Banks meet lending targets for small firms
    2019-11-14  08:53    Shenzhen Daily

REGULATORS are stepping away from setting sharp growth targets for lending to small businesses after meeting a goal that had weighed on the shares of China’s biggest banks.

Calling for a more calibrated approach to funding its small businesses, regulators Tuesday revealed that its five largest State-owned banks have increased lending to small business by 48 percent in the first nine months of the year, beating a 30 percent target set earlier in 2019.

“Going forward, we want to shift away from growth targets to more comprehensive measures for evaluating banks and have differentiated requirements for different banks,” said Li Junfeng, the director of the inclusive finance department at the China Banking and Insurance Regulator Commission, at a press briefing Tuesday.

The shift underscores the regulators’ move to a more market-based approach to create a sustainable path for lending to smaller enterprises as economic growth slows. Regulators are grappling with concerns over the health of its banking industry as bad debt levels have surged to the highest in at least 15 years.

At the same time as lending has jumped, the banks have cut lending interest rates. The average rate for inclusive finance loans — defined as those to businesses with less than 10 million yuan (US$1.4 million) of credit — was 6.75 percent in the first nine months, down 0.64 percentage point from 2018, according to Li. For the big five banks, the rate was even lower at 4.75 percent, down 0.68 percentage point from last year, he said.

The nonperforming loan ratio for inclusive finance loans is around 3.56 percent, down 1.3 percentage points year on year, Li said.

At the end of September, outstanding loans to small and micro-sized enterprises amounted to 36.39 trillion yuan with inclusive finance loans at 11.3 trillion yuan, up 20.81 percent from the beginning of the year, Li said.(SD-Agencies)

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