Regulator rolling out more recovery measures
The China Banking and Insurance Regulatory Commission plans to launch more measures to help stabilize employment and economic recoveries, Guo Shuqing, its chairman, told the two-day Lujiazui Forum.
The sudden COVID-19 outbreak had an unprecedented impact on China's economic and social development, he said. To help enterprises, especially small businesses, the country’s financial management department had unveiled a series of targeted measures.
From January to May, yuan loans for the real economy increased by more than 10 trillion yuan (US$1.4 trillion), an increase of more than 2 trillion yuan over the same period last year.
Next, Guo said, the banking and insurance regulator will continue to focus on aiding enterprises and accelerating the recovery of the national economy with favorable policies.
It will further encourage banks to introduce more unsecured and low-interest credit products, strengthen cooperation with local governments and make better rescue plans for companies that have encountered temporary funding difficulties, but have bright prospects and good credit records.
The role of policy finance will be strengthened, according to the authority.
This year, policy banks have arranged an increase of nearly 1 trillion yuan in credit over last year. Bond issuance will also grow so that more funds will be available.
In addition, China Development Bank and the Export-Import Bank of China have arranged special relief funds totaling 100 billion yuan this year. And more than 100 billion yuan of additional refinancing loans will be provided mainly to small and medium-sized banks, especially Internet banks, to ease the difficulty and high cost of financing for small and micro enterprises.
Meanwhile, more targeted protection plans will be developed and insurance’s role as a social stabilizer will be given full play.
The coverage of risk protection will be expanded and more insurance products will be rolled out to shield people from losses caused by business interruptions and natural disasters in rural areas, Guo added.