CBRC issued notice on Further Strengthening Financial Support for The Development of Small and Micro Enterprises in 2022

2022-06-17 0 By

In order to implement the decision and deployment of the Government Work Report on expanding the coverage of inclusive finance, stabilizing employment by stabilizing market players, and further promoting the solution to the financing problems of small and micro enterprises, continue to promote the task of financial support for the development of small and micro enterprises during the 14th Five-Year Plan period,China Banking and Insurance Regulatory Commission (CBRC) recently issued a Notice on Further Strengthening financial Support for the Development of Small and Micro Enterprises in 2022 (hereinafter referred to as the notice).According to the circular, the overall requirements of the work in 2022 are to adhere to the general tone of seeking progress while maintaining stability and continuously improve the financial supply of small and micro enterprises.Centering on the strategic tasks of ensuring stability, ensuring stability, and guaranteeing insurance, we will consolidate and improve the financial supply pattern featuring differentiated positioning and orderly competition, further improve the quality and efficiency of financial services, steadily increase bank credit and optimize the structure, enrich the products and businesses of universal inclusive insurance, and promote a reasonable reduction in comprehensive financing costs.In terms of total amount, the banking industry will continue to realize the “double increase” of inclusive loans to small and micro enterprises and the number of households.In terms of structure, we will strive to continuously increase the proportion of credit loans in the loan balance of inclusive small and micro enterprises.Efforts were made to increase the proportion of first-time borrowers among small and micro business borrowers, and the number of new “first-time borrowers” of small and micro business legal persons in large banks and joint-stock banks was higher than that of the previous year.In terms of cost, on the premise of ensuring the incremental expansion of credit, the overall interest rate of new inclusive loans for small and micro enterprises issued by the banking industry will be reduced compared with 2021.The circular focuses on the urgent need for high-quality development and recovery of small and micro enterprises, detailing the financial service requirements for small and micro enterprises in key areas and weak links.We will increase medium – and long-term credit lending to small and micro enterprises in advanced manufacturing and strategic emerging industries, and actively support medium – and long-term capital needs of small and micro enterprises in traditional industries in equipment renewal, technological transformation and green transformation and development.We will guide banking and insurance institutions to contact competent authorities and establish and improve information docking mechanisms for specialized and innovative small and medium-sized enterprises.We will improve science and technology credit and science and technology insurance services, and encourage banks and external investment institutions to explore new models of “loan + external direct investment” to serve small and micro science and technology start-ups on the premise that risks can be controlled.We will provide appropriate foreign exchange hedging products for small and micro foreign trade enterprises and expand the coverage and scale of export credit insurance for small, medium and micro foreign trade enterprises.Optimize the term management of loans for small and micro enterprises by borrowing and renewing loans.For small and micro enterprises with temporary difficulties but with the willingness to repay loans and the ability to create jobs, we will consider loan renewal, restructuring and other means in a coordinated manner, and independently negotiate repayment methods in accordance with market-based principles.The circular stressed that banking and insurance institutions should focus on the task of ensuring employment and people’s livelihood, actively respond to the financial needs of new citizens, self-employed businesses and self-employed business owners who do not need to apply for business licenses according to law, and improve the equality and convenience of financial services.At the same time, efforts should be made to improve the regional balance of financial resources, especially large banks and joint-stock banks, to lend more credit support to small and micro enterprises in less developed areas.”Notice” also to carry out the government work report “to promote enterprises credit information sharing” task project for deployment, clearly put forward the regulators and Banks insurance institutions at various levels shall actively participate in promoting the construction of credit information sharing mechanism and financing service platform, promote orderly expand the scope of information sharing, improve data availability of information, improve the function of platform.Focus on summarizing and promoting the good experience of provincial and municipal financing credit service platform construction to improve regional information integration sharing and application efficiency.We will strengthen the data capacity building of banking and insurance institutions, make solid progress in digital transformation, and accelerate the development and application of big data financial products.Special emphasis is placed on improving the security management system of enterprise credit information, and strictly regulating data security and privacy protection in cooperation with third-party institutions.In recent years, the banking and insurance industry has earnestly implemented the decisions and arrangements of the CPC Central Committee and The State Council, continuously deepened financial services for small and micro enterprises, individual businesses and other market players, and helped stabilize the macroeconomic market.Inclusive loans to small and micro enterprises have achieved rapid growth for four consecutive years. By the end of February 2022, the loan balance was 19.67 trillion yuan, up 22.16% year on year, 11.15 percentage points higher than the growth rate of all loans.The number of households with loan balances reached 34.5058 million.In the first two months of 2022, the interest rate of new inclusive loans to small and micro businesses was 5.57%, which has been steadily declining since the first quarter of 2018, and has decreased by 2.24 percentage points cumulatively.This article is from the financial community