Major Chinese banks up inclusive loans to small businesses in Q1

Inclusive loans to small and micro firms extended by major Chinese banks increased by 850.4 billion yuan (about 125.94 billion U.S. dollars) in the first quarter, according to the nation’s top banking regulator.

At the end of March, six major state-owned banks saw their balance of such loans hit 7.3 trillion yuan, said the China Banking and Insurance Regulatory Commission.

The commission said it will guide large banks to deepen financial services for small and micro firms, amid efforts to continue lending support and reasonably adjust the loan structure for such businesses.

In the first quarter, major Chinese banks extended loans to a total of 91,000 new small and micro firms borrowing for the first time, an increase of 20,000 from a year ago, the commission’s data showed.

A State Council executive meeting held last week announced new measures to help micro, small and medium-sized enterprises and self-employed households navigate hardships.

To step up financial support for businesses, major state-owned banks are expected to increase inclusive loans for micro and small firms by 1.6 trillion yuan this year, the meeting noted.