The China Banking Association and the All-China Federation of Industry and Commerce jointly issued a proposal on Monday, calling on banking institutions to improve credit access for private enterprises, offer better financial services for private technology companies and lower financing costs for the private sector.
The association said the proposal aims to drive banking and financial institutions to make more concrete endeavors to facilitate the high-quality development of the private economy.
Banking institutions are expected to support micro and small private enterprises for debut loans, rollover loans and credit loans, it said.
According to the proposal, enhancing financing services tools, such as intellectual property pledges and receivables pledges, is crucial to actively supporting technology-driven private enterprises in research and development, commercialization of innovations, and transformation and upgrades.
▲ A bank employee explains loan products tailored for micro and small enterprises in Chongqing in October. Sun Kaifan/For China Daily
Additionally, banking institutions are expected to reduce the overall financing costs for private enterprises by increasing credit supply and streamlining processes to minimize intermediary expenses, it said.
The move comes amid stronger efforts by the nation to support the high-quality development of its private sector.
Lin Zeyan, deputy secretary-general of the All-China Federation of Industry and Commerce, said that based on a financing assistance program tailored for small and medium-sized enterprises, which the federation has been engaged in over the past five years, the proposal aims to provide stronger support to and cover all private economic entities, and encourage broader participation from banks.
Xing Wei, vice-president of the China Banking Association, said the proposal will serve as a guideline for banking institutions to improve financial services for private enterprises, fostering the high-quality development of the private economy in the new era.
