Central Bank to Improve Financial Services for Minor BusinessesChina's central bank governor Dai Xianglong Wednesday pledged to take comprehensive measures to improve financial services for the country's medium-sized and small businesses.At a conference on the issue organized by the People's Bank of China, Dai promised that the central bank will make full use of its monetary and credit policies and coordinate closely with other authorities to make financing easier for minor enterprises. For the moment, he stressed, the central bank's guidelines for financial services for such enterprises must be perfected, and commercial banks will be organized to investigate and research the financial needs of minor enterprises. The central bank will encourage commercial banks to readjust their credit structures and give more support to mid-sized and small enterprises, especially private and small enterprises. The country's state-owned banks are urged to play an important role in this regard, Dai said. All state-owned commercial banks must set up a special department in their headquarters to manage loans for small businesses, and simplify the procedures for loan approval for higher efficiency, he said. Mid-sized and small commercial banks should redefine their role and give priority to financial services for minor enterprises. Urban commercial banks will be encouraged to have small enterprises and urban residents as their shareholders to increase their equity capital. Rural credit cooperatives will be reformed to improve their services to township enterprises. Dai pledged that the central bank will lend support in the form of providing additional loans to mid-sized and small financial institutions that have distinguished themselves in serving minor businesses. He also promised a more flexible interest rate policy, which will allow higher interest rates for loans to minor enterprises by minor banks. The central bank governor stressed the importance of further improving risk management in financial services for minor businesses, including the perfection of the risk evaluation index system for minor businesses and the inside control system in commercial banks. He also spoke of the need to learn the experiences of foreign banks and promote renovations in the banking system so as to improve financial services to minor businesses. Dai disclosed that the central bank will organize a hearing every six months to collect opinions and suggestions from all sides for improvement. |
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