Summary
[Central Bank: Inclusive small and micro loan support tools have built-in incentive mechanisms to fully mobilize the enthusiasm of financial institutions]The relevant person in charge of the People’s Bank of China answered reporters’ questions about the continuous conversion of the two direct tools and said that the inclusive small and micro loan support tools have built-in incentives. Mechanism, fully mobilize the enthusiasm of financial institutions, and promote small and micro enterprises to increase financing, reduce prices, and expand coverage. First, the range of institutions supported by the tool is local corporate banks that meet the requirements. The second is to provide funds to local corporate banks in accordance with the incremental balance of inclusive small and micro loans. Through monetary policy operations, the People’s Bank of China provides funds to local corporate banks. The amount of funds is determined by 1% of the quarter-on-quarter increase in the inclusive small and micro loan balance (that is, the increase at the end of the quarter compared with the end of the previous quarter). The third is to adhere to the principle of soundness. The credit risk of related loans is still borne by financial institutions to prevent moral hazard. Encourage local corporate banks with stable operations and potential to increase support for small and micro enterprises on the premise of risk prevention and control. (Associated Finance Press)
peopleBankResponding to reporters’ questions about the continuous conversion of the two direct tools, the person in charge said that the inclusive small and micro loan support tool has built-in incentive mechanisms to fully mobilize the enthusiasm of financial institutions and promote small and micro enterprises to increase financing, reduce prices, and expand coverage.The first is that the scope of the organization supported by the tool is the local legal person that meets the requirementsBank.Second, according to the increment of the inclusive small and micro loan balance to the local legal personBankFunding.People’s Bank of China passedcurrencyThe policy is to provide funds to local corporate banks. The amount of funds is determined by 1% of the quarter-on-quarter increase in the inclusive small and micro loan balance (that is, the increase at the end of the quarter compared with the end of the previous quarter). The third is to adhere to the principle of soundness. The credit risk of related loans is still borne by financial institutions to prevent moral hazard. Encourage local corporate banks with stable operations and potential to increase support for small and micro enterprises on the premise of risk prevention and control.
(Article source: Financial Associated Press)
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