Banks urged to increase support for real economy, SMEs
Directives aimed at promoting the prevention and control of financial risks and dismantling shadow banking
The China Banking and Insurance Regulatory Commission has recently put forward key tasks in a video conference chaired by the director, Guo Shuqing, The Paper reported.
Firstly, it intends to solidly promote the prevention and control of financial risks, as well as steadily facilitate the reduction of leverage and unswervingly dismantle shadow banking.
Secondly, it will also work to increase investment in the real economy, requiring the banking and insurance sector to further fulfill the need of the real economy.
As of the end of July, various loans issued by banks and financial institutions increased by 12.4% from a year earlier, and insurance funds have provided more than13 trillion yuan (US$1.91 trillion) in financing for the real economy.
Banks and insurance firms are also required to focus on alleviating the financing difficulties of small and micro enterprises.
Loans for the latter increased by 12.7% year-on-year, which is higher than the growth rate of standard loans by 0.3 percentage points.