Banking

Regulator calls for more financial support for small companies

(Xinhua)
Updated: 2011-03-03 09:14

BEIJING - China's banking regulator has ordered commercial lenders to offer more financial support to small enterprises, according to a statement released on its website on Wednesday.

The China Banking Regulatory Commission (CBRC) said in the statement that intensifying financial support for small companies is an important aspect of fulfilling the social responsibility of banks.

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The regulator said that it would supervise commercial banks to improve their financial services to small enterprises.

Commercial lenders should offer differentiated interest rates based on risks of different loans, speed up examination and approval procedures and provide training to employees involved in loans to small companies.

Zhang Xiaosong, deputy head of the CBRC's office for improving financial support for small companies, told Xinhua last week that China's small companies usually find it difficult to obtain credit because banks feel the risk is relatively high.

The CBRC would strive to ensure that the increase in loans to small companies this year would be no less than the growth of all loans, Zhang said.