In the first quarter of this year, the financial regulatory authorities in China continued to steer financial resources towards key sectors, optimizing the structure of inclusive creditRecent statistics indicate that by the end of March, financial institutions experienced a year-on-year growth in inclusive small and micro loans and agricultural loans of 20.3% and 13.5%, respectivelyMarch also witnessed a record low in the weighted average interest rate for newly issued inclusive small and micro loans, which stood at 4.36%.
The central financial work meeting underscored the importance of addressing five major themes in finance, particularly focusing on inclusive financeExperts contend that tackling these five focal points is crucial for enhancing the quality of financial services supporting the real economy, as well as for advancing the structural reforms on the supply side of finance
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Financial institutions are encouraged to leverage their organizational, managerial, and technological advantages, utilizing tools like the internet and big data to improve their ability to serve sectors such as technology, green initiatives, and small or micro enterprisesThis will enhance the adaptability and inclusiveness of financial services.
Building on this foundation, it is essential to further refine the ecosystem of inclusive financial services, integrating financial support with industrial development and social welfare initiativesBy forming a virtuous cycle of mutual promotion and collaborative growth, we can enhance the overall quality and efficiency of inclusive financial servicesThis not only supports high-quality economic development but also drives the thriving of the real economy, propelling society towards new heights.
In various regions, financial institutions are harnessing technology to eliminate financing bottlenecks faced by small and micro enterprises
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For instance, a representative from a construction equipment rental company in Liaocheng, Shandong Province, shared how they accessed a 1 million yuan loan through the "Government-Bank e-Enterprise" mini-program, which quickly links businesses with banks and provides insights into inclusive credit policiesThe partnership between Construction Bank, Agricultural Bank, and local administrative service departments in Liaocheng reveals a focused effort to deepen data sharing and pinpoint financing challenges faced by enterprises, effectively meeting diverse financing needs among micro and small businesses.
According to Mo Xiugen, the Deputy Director of the Chinese Academy of Inclusive Finance at Renmin University, inclusive credit backed by big data analysis can more accurately assess borrowers' creditworthiness, thus reducing the reliance on guarantees and collateralIn the current climate, as bank lending rates decrease across the board, the appeal of inclusive credit is amplified due to relatively lower loan costs.
In recent years, commercial banks have concentrated on matching the financing needs of various business entities with appropriate credit products, effectively breaking down the "last mile" of inclusive finance
They have continuously expanded the acceptable range of collateral for rural financingFor example, Xu Xianguo, the chairman of Dongtou Rural Commercial Bank, stated that their bank has intensified its personalized service approach through the "One Policy for One Household" initiativeWith the assistance of financial officers delivering loans directly to clients, they have implemented a credit initiative for every island resident, enriching the lending pool of collateralized assets on the islands and launching innovative financial products aimed at boosting rural incomes, including loans backed by marine carbon sinks and geographic indicators.
Looking ahead, banking institutions need to enhance their service capabilities in key sectors, increasing both initial and follow-up loan provisions while gradually expanding the reach of inclusive servicesYe Yindan, a researcher at the Bank of China Institute, highlighted that financial institutions should adopt technology-driven approaches to reduce costs and improve efficiency