banks grant 140 billion yuan to support small businesses
(Xinhua)
Updated: 2006-10-01 17:08
The Chinese government is seeking to foster small businesses, a great
contributor to economic growth, by providing them with easier access to bank
loans and other financing, say sources with the China Banking Regulatory
Commission (CBRC).
Statistics from the CBRC show about 16,000 small firms received total loans
of 2.64 trillion yuan (330 billion US dollars) in the first half of this year,
an increase of 140 billion yuan over the beginning of the year.
Since the State Council, China's cabinet, called for stronger support for
private businesses in February last year, Chinese banks have expanded loans to
small firms, in a move to relieve their thirst for capital and ensure their
development.
At the end of last year, loans to small firms accounted for 60 percent of the
total in Southwest China's Sichuan Province, contributing to 75 percent of the
profits for small- and medium-sized commercial banks, but with a non-performing
loan ratio of 8.52 percent, four percentage points lower than the provincial
average.
In eastern Zhejiang Province where private businesses are well developed, the
balance of loans to small firms stood at 435.1 billion yuan (54.39 billion US
dollars) by the end of August, up 19 percent over the beginning of the year,
while the non-performing loan ratio dropped one percentage point to 3.19
percent.
The CBRC said it would urge financial institutions across the country to
improve services to small firms, in order to facilitate their
development. (For more biz stories, please visit Industry Updates)
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