BEIJING, Nov. 20 (Xinhua) -- China Banking and Insurance Regulatory Commission (CBIRC) is compiling a guideline this week to support development of the private economy, which is likely to be submitted to the State Council for approval this week, according to Zhou Liang, vice chairman of the CBIRC, at the 9th Caixin Summit on Monday.
Banks and insurers are required to take effective measures to make financing less difficult and less expensive for small and micro businesses, said Zhou.
Zhou pointed out that the insurance asset management companies are allowed to set up special products to resolve liquidity risk of the listed companies and private enterprises due to the stock pledge. The banks are urged to reform their internal performance appraisal system to establish a due diligence fault correction and fault tolerance mechanism.
The CBIRC will also guide the banks to use modern technologies to improve loan efficiency and reduce financing costs, and support the market-oriented and legalized debt-for-equity swaps to help enterprises reduce their debt burden, Zhou added. (Edited by Hu Pingchao, hupingchao@xinhua.org)
A single purchase
