China Banking and Insurance Regulatory Commission (CBRC) announced on March 24 that the CBRC will implement classified policies to support the healthy development of private enterprises. We will encourage banking and insurance institutions to significantly increase their medium – and long-term funding support, and continue the policy of deferment of principal and interest payments on loans to inclusive small and micro businesses and the credit loan support program.
CBRC data show that in recent years, the total credit of financial institutions to private enterprises has increased significantly. By the end of 2020, the outstanding loan to private enterprises in China was nearly 50 trillion yuan, up by more than 14% year on year. The loan balance of inclusive small and micro businesses reached 15.3 trillion yuan, up 30.9% year on year, 18.1 percentage points higher than the growth rate of all loans, among which the growth rate of large banks reached 54.8%. However, the market also shows that private enterprises, especially small and micro private enterprises, still face financing difficulties.
In the next step, China Banking and Insurance Regulatory Commission will further improve the system and measures, focus on promoting the implementation of policies and implement policies to support the healthy development of private enterprises.
First, for the private enterprises with outstanding main business, sound finance, and good credit of major shareholders and actual controllers, banks are required to insist on checking the primary source of repayment, reduce excessive reliance on mortgage guarantee, and increase the intensity of credit lending.
2 it is to supply chain, strategic industries and advanced manufacturing industry chain independently controllable private science and technology enterprises, encourage Banks to insurance institutions greatly increased long-term financial support, actively develop insurance science and technology, continuous improvement of science and technology innovation of financial services, support key core technology engines, basic research, achievements, support pledge financing product innovation of intangible assets.
Third, for those private enterprises and Internet platform enterprises that can undertake the responsibility of scientific and technological innovation, we will support banking and insurance institutions to carry out business cooperation with them in accordance with the law as always, provide high-quality financial services, and better support the real economy.
Four is promising on the market, absorbing employment ability, pratt &whitney type small micro enterprise standard private small micro enterprise, continue pratt &whitney type small micro enterprise loan extended servicing policy and credit support plan, guide the Banks increase “first DaiHu” renew loans, credit loans, on the strength of the medium and long-term loans, to keep the cost of financing at a reasonable level.
Fifth, for private enterprises that encounter temporary difficulties, we will guide banking and insurance institutions to adopt support and disposal measures for “one enterprise, one policy” in accordance with the principle of marketization and rule of law, and strive to defuse their liquidity risks. For private enterprises that are in line with the direction of optimizing and upgrading the economic structure and have certain competitiveness but encounter temporary difficulties, we will encourage banking financial institutions to set up creditors’ committees, strengthen unified coordination, refrain from blindly suspending, suppressing or withdrawing loans, and provide necessary financing support to help these enterprises maintain and resume normal production and operation.
Six is to appear risk of private enterprises, which requires companies to relief and development, the combination of positive brokeback self-help, divest noncore assets, concentrate on slow-release risk, at the same time rely on the local government to carry out rescue work, encourage Banks to insurance agencies on the premise of equality, voluntary, the integrated use of capital, share, the marketization of financial restructuring, merger and reorganization, or debt convertible way to help enterprises optimize the debt structure, such as perfecting the corporate governance.