The Strong Growth in Nationwide Small and Micro Enterprise Loans Indicates Strengthened Financial Supervision and Services
As of the end of November 2023, the balance of inclusive small and micro enterprise loans nationwide has increased by 23.13% year-on-year, according to a recent statement by the State Administration of Financial Supervision. This substantial growth in loans emphasizes the comprehensive efforts to strengthen financial supervision in order to better serve the real economy.
The Central Financial Work Conference has stressed the importance of optimizing the capital supply structure and using more financial resources to promote technological innovation, advanced manufacturing, and green development, as well as supporting small, medium, and micro enterprises. This initiative aims to improve the effectiveness of financial supervision and bring all financial activities under the umbrella of supervision.
One example of these strengthened financial services can be seen in Zhejiang Yuansen Ecological Environment Technology Co., Ltd., a technology-based small and medium-sized enterprise that recently received a green loan based on its high tax credit and operating conditions. This is part of an effort to provide comprehensive financial services to small and micro enterprises through a system of “accurate portraits.”
Ningbo, a city with a high concentration of private small and medium-sized enterprises, has witnessed an increased demand for diversified and efficient financial services. In response, the local government aims to build an information sharing mechanism and platform for regulatory authorities and industry authorities to provide an accurate picture of small and micro enterprises, ensuring tailored financial services.
Similarly, the Bank of Jiangsu has embarked on the “Smart Financial Evolution” project, linking with smart cities and digital government affairs to improve its ability to serve small and micro enterprises. These measures highlight the commitment to providing comprehensive financial services aligned with the diverse needs of enterprises.
To accommodate the tailored financial needs of technology-based enterprises, banks are emphasizing the establishment of a credit evaluation and risk identification system suitable for these entities. This is exemplified by China Merchants Bank’s efforts to facilitate technology finance through specialized mechanisms and pilot projects, focusing on technology-based enterprises’ unique characteristics.
Finally, the rural credit system has been a key priority in supporting comprehensive rural revitalization, with initiatives such as party building to lead the construction of credit villages and gathering rural-related data. In Anhui, this approach has resulted in the issuance of loans to a large number of credit entities, supporting the overall rural credit system construction.
The remarkable increase in nationwide small and micro enterprise loans demonstrates not only a strengthened financial supervision but also an enhanced commitment to serving the real economy and fostering comprehensive rural revitalization. These developments indicate a promising trajectory for financial services to continue supporting economic growth and innovation in various sectors.
This news article was authored by Ouyang Jie.