MNI BRIEF: PBOC Vows Further Easing To Boost Credit To SMEs

The People’s Bank of China pledged to further expand credit to support small and micro businesses, including a cut in the reserve requirement ratio and increased relending, according to a statement on Thursday on its website.

The PBOC will make good use of facilities, such as an RRR cut, relending and rediscounting as well as targeted lending tools for SMEs in a bid to ensure ample funding and smooth lending channels, according to the statement.

The central bank will ensure SME loan increase at the same or faster pace as the overall growth of bank loans and enhance aids for regions and sectors hit hard by the pandemic and suffering sluggish economic growth, said the statement, noting the funding sources will be diversified through issuing SME financial bonds, recapitalising debt and credit-asset-backed securities among other steps.