Lending to smaller enterprises surging |
| Date Added: September 21, 2009 12:53:38 AM |
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| Category: Garment Accessories |
| Bank lending to SMEs in Guangdong province grew significantly in the first half of this year despite the global l-isoleucine economic downturn. Loans to SMEs in Guangdong - excluding the city of Shenzhen - rose by 23.6 percent to 927.954 billion yuan for the six months ending in June, Liu Fushou, director of the Guangdong branch of China Banking Regulatory Commission (CBRC), said at a l-arginine recent press conference. Loans to smaller companies comprised 44.28 percent of lending to all enterprises and had a growth rate of 3 percentage points higher than overall business lending in the province. A total of 77,007 SMEs received bank loans in the first half of this year, 5.26 percent more than at the start of the year. Almost 60 percent of SME loans went to the manufacturing, wholesale, retail and real estate sectors. Short-term lending accounted for 46.19 percent of the total, followed by medium-term notes at 28.33 percent and long-term borrowing, which comprised 25.48 percent of the total, Liu said. Guangdong branches of the five largest national banks, five of its share-holding banks and local rural credit cooperatives have all established special divisions for SME lending. They have also set up special divisions for SME loans in cities across Guangdong with strong credit demand. Industrial and Commercial Bank of China now has 133 centers for SME business in those cities. Other share-holding banks are now preparing special SME divisions, Liu said. By collecting non-financial information on the operation of SMEs through multiple channels, they have been establishing credit rating standards for SMEs. Banks have also been reorganizing to speed up processing of SME loans. Bank of China now has ordinary, fast and express approval procedures for SMEs of different types and risk levels. They have also adopted new risk management regimes to create more affordable and flexible interest rates for SMEs. Some 140 financial products in 11 categories are now offered. The CBRC Guangdong branch is pushing forward a three-year plan for the development of new types of rural financial institutions to improve the services to SMEs and rural areas, Liu said. Two village and township banks have been established in Zhongshan and Jiangmen on a trial basis. Four new types of rural financial institutions will be established in Guangdong this year, including three village and township banks and one lending firm. Some 17 new types of rural financial institutions are planned for 2010 - 2011. |
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