China’s monetary authorities to keep bank credits on tap to help companies survive the business slump caused by the coronavirus outbreak
- The bank regulator will ensure that small and medium enterprises (SMEs) get access to the 537 billion yuan (US$77 billion) of credit lined up to help them pull through the business slump caused by the coronavirus outbreak
- Companies that can restart production as soon as possible will receive the support of the People’s Bank of China, to the extent that a “small increase” of non-performing loans owed to banks will be “tolerated”
China’s central bank and financial regulators have offered additional funds to banks, prodding them to help manufacturers and businesses pull through an economy that is being hobbled by the twin burdens of a trade war and the nation’s worst health crisis in nearly two decades.
The bank regulator will ensure that small and medium enterprises (SMEs) get access to the 537 billion yuan (US$77 billion) of credit lined up to help them pull through the business slump caused by the coronavirus outbreak, the China Banking & Insurance Regulatory Commission (CBIRC) said during a press conference in Beijing.
“A financial credit support [system] has been offered to enterprises, while help for areas hit hard by the novel coronavirus has been strengthened,” the CBIRC’s vice-chairman Liang Tao said.
The viral outbreak, which sickened more than 66,000 people in mainland China and killed more than 1,500, has put consumer demand under pressure, and exerted a burden on price stability because of the delay in full production, said the Chinese central bank’s deputy governor Fan Yifei.