THE central bank said Thursday it would promote more credit for smaller firms and boost financial institutions’ confidence to lend funds.

The People’s Bank of China (PBOC) urged national banks in a notice to prioritize lending to central and western regions, as well as areas and sectors hit hard by COVID-19 outbreaks.

The PBOC notice on lending was the latest in a flurry of statements by authorities in recent weeks seeking to get companies back on their feet. New bank lending in China fell to the lowest in nearly four and a half years in April.

Amid “increasing difficulties for some industries and firms impacted by the epidemic,” the PBOC said it would work to improve the willingness and capability of financial institutions to serve small firms and lower their funding costs to stabilize economic growth and employment.

“Fault tolerance and risk mitigation systems should be improved to boost the confidence to lend,” the notice said.

(SD-Agencies)