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Banks pick micro firms as clients
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SMALL and micro enterprises have earned most attention from banks for the first time, according to a report by China Banking Association.
Around 65 percent of the surveyed bankers chose the businesses as their key potential clients for the future, the report showed.
In recent years, the banks’ recognition and dispersal of risk has been strengthened and management of loans to small businesses improved, the report said.
In a bid to improve credit support for small and micro enterprises, startups and agricultural production, China’s central bank announced a targeted reserve requirement ratio cut in September.
The new policy, to take effect in 2018, offers commercial banks a reserve requirement ratio cut of 0.5-1.5 percentage points if their annual outstanding or new loans in inclusive financing meet certain requirements.
The survey covered 1,920 bankers from 166 domestic financial institutions.
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