China Further Boosts Financial Services to Micro and Small Businesses

The China Banking and Insurance Regulatory Commission (CBIRC) recently issued a circular on further promoting the high-quality development of financial services for micro and small enterprises in 2021 (Yin Bao Jian Ban Fa No. 49 [2021]). Around the overall goal of enhancing the effective growth of total financial supply to micro and small enterprises and significantly improving its quality, efficiency and effectiveness, policy requirements are clearly put forward to banking and insurance institutions serving these enterprises. These requirements include:  

• Maintain steady and efficient incremental financial supply;

• Optimise the financial supply structure;

• Enrich inclusive insurance products;

• Improve institutional mechanisms and professional capabilities; and

• Put idle financial resources to good use.

Source: China Banking and Insurance Regulatory Commission