China aims to boost big-bank loans to small business over 40per cent in 2022

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BEIJING/SHANGHAI : China aims to boost lending to small businesses from large commercial banks by over 40per cent this year, Premier Li Keqiang told the annual meeting of parliament on Saturday.The government will urge financial institutions to cut lending rates further, reduce fees and promote mid- and l

BEIJING/SHANGHAI : China aims to boost lending to small businesses from large commercial banks by over 40per cent this year, Premier Li Keqiang told the annual meeting of parliament on Saturday.

The government will urge financial institutions to cut lending rates further, reduce fees and promote mid- and long-term lending to the manufacturing sector, Li said, reading his work report. China's five major banks - Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China , Bank of China and Bank of Communications - each reported more than 30per cent lending growth to small businesses in 2021, state broadcaster CCTV said in January.China has been making efforts to enhance financing support to micro- and small enterprises, which it sees as key contributors to stabilising employment and people's livelihoods.

The government will prioritise employment through fiscal and financial policies to enhance support for companies to keep and increase jobs, Li said. It will also set up a financial stability guarantee fund as to safeguard against systemic risks, he said.Source: Reuters

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