BEIJING, Nov.19 (Xinhua) -- Large banks in China have recently released a series of measures to support financing of the private enterprises.
Industry insiders believe that these measures surely will promote development of these private enterprises, but should be carried out in line with credit standards and supervision requirements.
China Construction Bank (CCB) issued a notice on last Thursday to support the development of private economy and small and micro enterprises.
Likewise, the Bank of China (BOC), the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China (ABC) and the Bank of Communications (BCM) also published policies to improve their comprehensive financial services for the private enterprises.
In addition to these policies, the banks also unveiled other pragmatic measures to ease the financing problem of the private companies.
For example, the Postal Savings Bank of China launched a "tea tree mortgage loan" product in Qingyuan, south China's Guangdong Province to alleviate the local private enterprises’ shortage of mortgage guarantees.
By the end of September, the balance of the domestic banks' loans to the private enterprises had reached 30.4 trillion yuan, showing the improved financing environment for the private enterprises.
However, some market participants concern about the risk associated with massive lending spree. The regulators have also made it clear that the credit standards have not been relaxed, and these standards are also the guidelines for supervision.
Although the current policies have made banks lower interest rates on private enterprise loans, the bank insiders are still worried about the sustainability of the policies.
Experts say it is necessary to improve the financial system and establish a long-term mechanism for the healthy development of the private economy. (Edited by Wu Shuang, wushuang2018@xinhua.org)
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