Banks boost local technological innovations and inclusive finance: regulator

Banking financial institutions in Shanghai have lent great support to local scientific and technological innovations during the past year, and they also boosted the financial inclusion of small and micro enterprises, the local banking watchdog said.

As of the end of June 2018, the number of local science and technology companies that have received bank loans reached 5,768, up 15.1 percent year over year, according to the Shanghai bureau of China’s Banking Regulatory Commission.

Their combined outstanding loans stood at 241.7 billion yuan (US$35.1 billion), rising 21.1 percent from twelve months earlier. The non-performing loan ratio was 0.36 percent, lower than the local overall banking sector by 0.21 percentage points.

These achievements came after the one-year implementation of an action plan jointly released by Shanghai’s banking regulator as well as the Shanghai Science and Technology Committee, which is dedicated to promoting the development of technology firms.

By the end of this June, outstanding loans extended to small and micro enterprises hit 176 billion yuan, up by 45.84 percent compared with a year ago, the watchdog said.

In the first half, Shanghai’s banking financial institutions cancelled fees for a total of 120 services, consolidated and streamlined fees for 91 items and lowered charges for 54 services, which saved 680 million yuan altogether for local small-sized firms.

Han Yi, director of the Shanghai bureau of China’s Banking Regulatory Commission, said that they will continue to help fund technological companies and promote the city’s development of inclusive finance in the latter half of the year.