PBOC to raise support for small firms

Source: Xinhua | 2018-09-06

China’s central bank governor has said that the country will enhance support for small and micro-sized enterprises with better policy coordination.

Monetary, fiscal and supervisory policies should be coordinated to raise the willingness of financial institutions to support small companies, said governor Yi Gang in a statement released yesterday by the People’s Bank of China.

The country should treat state-owned companies and private companies equally in financial policies, including lending and bond issuance policies, Yi said at a meeting with commercial banks and companies.

“(China) should capitalize on the functions of a socialist market economy, and provide higher quality financial services to private firms and small and micro-sized firms through market competition,” he added.

Meanwhile, the financial system should build a sustainable business model to serve small companies and enhance risk prevention, with an accurate understanding of the facts of a short average life cycle, difficulties in getting loans for the first time, and high-risk premiums, Yi said.

Companies at the meeting mentioned problems including difficulties in getting financing and high financing costs.