Shenzen asks lenders to provide support to recovering SMEs

Friday 18 March 2022 14:57 CET | News

Shenzhen’s financial authorities have called for lenders within the city to ensure they provide adequate support to small businesses still reeling from the impacts of COVID-19-related restrictions.

Shenzhen’s banking and securities regulators recently jointly issued the ‘Notice on Further Strengthening Financial Services Support for the Ongoing Stable Development of the Economy and Society During the Pandemic’. The Notice outlines a total of six measures for shoring up financial services support for the Shenzhen economy during the imposition of new COVID-19 lockdown measures, including:

Raising the quality and efficiency of pandemic-resistance financial products and services. Encouraging financial institutions to provide specialist pandemic-prevention bank loans to enterprises and individuals.

Effectively providing financial services to troubled enterprises and individuals. Encouraging financial institutions and local financial organisations to expand contact with troubled enterprises, promptly resolving the difficulties and complaints of such enterprises, and actively providing financial support. 

Making full use of the role of insurance and guarantees. Encouraging and guiding insurance institutions to expand enterprise asset insurance, secure production liability insurance, and export credit insurance, to provide more guarantees for the operation and production of micro-and-small enterprises.

Making full use of the role of local financial organisations. Encouraging micro-loans, financial leasing, commercial factoring, and other financial organisations to reduce fees or interest rates or increase lending to enterprises affected by the pandemic.

Increasing the efficiency of cross-border renminbi operations. Encouraging banks to open up ‘green channels’ for cross-border renminbi operations in relation to pandemic prevention and related imports and exports of materials and donations.

Raising the convenience of financial services. Encouraging financial institutions and local financial organisations to put pandemic-resistance products online, simplify operational procedures and pragmatically raise the efficiency of operations processing. 

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Keywords: COVID-19, SME lending, financial institutions, regulation, banks
Categories: Banking & Fintech
Countries: China
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Banking & Fintech

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