Centering on the policy requirements of going all out to increase credit supply, many banks responded positively at the first time.
Recently, the People’s Bank of China held two important meetings in one day, asking the financial system to increase support for the real economy and go all out to increase loan issuance. The State Council recently held a national teleconference on stabilizing the economy and further clarified that efforts should be made to ensure market entities, employment and livelihoods, economic resilience, and efforts to ensure reasonable economic growth in the second quarter and a drop in unemployment as soon as possible.
The reporter learned that the Export-Import Bank, Agricultural Bank of China, Bank of China, Postal Savings Bank of China, Shanghai Pudong Development Bank, Industrial Bank, China Zheshang Bank, etc. have recently held internal mobilization meetings and implemented policy requirements, calling for a package of economic stabilization measures issued by the State Council. The whole bank increased its credit extension to keep the economy operating within a reasonable range.
Banks mobilize to increase credit
It is understood that a number of banks have held meetings to implement the policy requirements. For example, the Export-Import Bank of China held a bank-wide video conference on May 25, requesting the whole bank to use extraordinary efforts and measures to promote the stabilization and recovery of the economy, steady progress and quality improvement, and go all out to help stabilize the economic market.
A vice president of a joint-stock bank said that the bank has held a meeting to mobilize and assign tasks. The general idea is to increase credit issuance within the scope of its own investment capacity, and to put in place the corporate bailout policy, in accordance with policies such as deferred repayment of principal and interest. Arrangements should be made for enterprises affected by the epidemic to extend their delays and make full loans.
“We must be prudent in cutting off loans, withdrawing loans, and suppressing loans for enterprises in difficulty. Banks must overcome difficulties together with enterprises. This is what we have been emphasizing.” The vice president said that the reality this year is more difficult than expected, but The experience of responding to the epidemic has been relatively rich, and loans can be issued online. Overall, the growth of credit has remained stable, and in the future, more investment will be focused on small and micro enterprises, science and technology enterprises, and green finance.
It is understood that some banks in Shanghai have also mobilized, but due to the impact of the epidemic, there is no clear credit arrangement.
“Xingli has already held a mobilization meeting, requesting to increase investment, to release as much as possible, and to sprint in June.” A credit person from a sub-branch of a joint-stock branch in Shanghai told reporters, but Xingli did not give specific indicators, it may be “going up” not capped”.
Affected by the epidemic, it was difficult for Shanghai to release credit in May, and only projects that had previously completed the approval process could complete the loan online. The above-mentioned person said that since May, his work focus has basically been on reserve projects. The end of June is just in time for the assessment time of the first half of the year, and the next month or so will be the peak of delivery.
A person from the Shanghai branch of a major bank told reporters that the head office held a mobilization meeting a few days ago to make arrangements for increasing credit issuance. “The specific indicators are combined with the situation on the ground. At present, the situation in Shanghai is special and there is no specific arrangement.”
Insufficient demand for effective loans remains a constraint
The president of a city commercial bank in the northwest region told reporters that the company department has been arranged to focus on promoting further credit issuance, but the pressure of new loans is still great, and the demand for corporate loans in the region is still insufficient. The next focus will be mainly on small and medium-sized enterprises Micro-enterprises, inclusive finance and characteristic industries.
Tao Yiping, President of Industrial Bank, said at the shareholders’ meeting held yesterday that due to the impact of the epidemic in April and May, the demand for credit has weakened, but a series of measures to stabilize growth have recently been introduced, focusing on key regions, key areas and key industries. Increase financial support and expand credit scale for effective growth.
Tao Yiping predicts that there will be greater demand for the construction of network-based infrastructure such as transportation, energy, and water conservancy, the construction of industrial upgrading infrastructure such as information, technology, and logistics, and the construction of urban infrastructure.
In response to the increasing difficulties of enterprises in some industries affected by the current epidemic, as well as the lack of endogenous power of financial institutions and the insufficiency of external incentives and constraints, the People’s Bank of The Circular on the Long-Term Mechanism, starting from the factors that restrict the lending of financial institutions, strives to improve the willingness, ability and sustainability of financial institutions to serve small and micro enterprises, and help stabilize market entities, employment and entrepreneurship, and economic growth.Return to Sohu, see more
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