China expands lending to fund-hungry small firms

Editor: 管理员      Date:2011-10-08      Hit:7382
%3CP%3E%3CFONT%20face%3DVerdana%3EChinese%20banks%20have%20extended%20more%20loans%20to%20small%20firms%20to%20ease%20their%20financial%20predicaments%20as%20the%20government%20tightens%20monetary%20supply%2C%20a%20banking%20regulator%20said%20on%20Sept%2028.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EOutstanding%20loans%20to%20small%20firms%20grew%2026.6%20percent%20year-on-year%20to%20hit%209.85%20trillion%20yuan%20%28%241.55%20trillion%29%20at%20the%20end%20of%20July%2C%20said%20Xiao%20Yuanqi%2C%20an%20official%20in%20charge%20of%20financial%20services%20for%20small%20enterprises%20at%20the%20China%20Banking%20Regulatory%20Commission.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20growth%20was%2010%20percentage%20points%20higher%20than%20that%20of%20the%20banks%27%20total%20outstanding%20loans%2C%20Xiao%20told%20Xinhua.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMore%20than%20100%20commercial%20banks%20have%20set%20up%20special%20operations%20to%20ease%20small%20firms%27%20difficulties%20getting%20access%20to%20bank%20credit%2C%20he%20noted.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20figures%20came%20at%20a%20time%20when%20China%20is%20trying%20to%20balance%20the%20missions%20of%20countering%20inflation%20and%20sustaining%20the%20growth%20of%20small%20enterprises.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20People%27s%20Bank%20of%20China%2C%20or%20the%20central%20bank%2C%20has%20raised%20the%20benchmark%20interest%20rate%20three%20times%20this%20year%20and%20increased%20the%20reserve%20requirement%20ratio%20six%20times.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20measures%20bit%20into%20small%2C%20cash-strapped%20companies%2C%20which%20are%20already%20disadvantaged%20in%20seeking%20bank%20support%20due%20to%20insufficient%20collateral.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EOnly%2015%20percent%20of%20China%27s%20small%20enterprises%20could%20get%20loans%20from%20banks%20and%20half%20of%20them%20had%20to%20resort%20to%20private%20lenders%2C%20according%20to%20a%20report%20by%20the%20National%20School%20of%20Development%20with%20Peking%20University%20in%20July.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWith%20tighter%20liquidity%20and%20stricter%20regulatory%20requirements%20on%20capital-adequacy%20ratios%20and%20loan-deposit%20ratios%2C%20banks%20are%20more%20reluctant%20to%20lend%20to%20small%20firms%2C%20said%20Ai%20Min%2C%20a%20retail%20banking%20general%20manager%20with%20China%20Minsheng%20Banking%20Corp%2C%20Ltd.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EBesides%2C%20the%20expanding%20size%20of%20lending%20to%20small%20firms%20may%20lead%20to%20higher%20risks%2C%20said%20Ai.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20suggested%20banks%20improve%20the%20risk%20evaluation%20and%20collateral%20system%20for%20loans%20to%20small%20firms.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%28China%20Daily%29%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%3C/FONT%3E%26nbsp%3B%3C/P%3E