Date
18 November 2017
The State Council, in a meeting led by Premier Li Keqiang, has vowed to curb unreasonable rises in lending costs by financial institutions. Photo: Xinhua
The State Council, in a meeting led by Premier Li Keqiang, has vowed to curb unreasonable rises in lending costs by financial institutions. Photo: Xinhua

China urges banks to lend more to small firms

The State Council, China’s cabinet, has urged commercial banks to step up lending to small, capital-strapped enterprises and help them reduce financing costs, the National Business Daily reported Thursday.

According to a statement issued after a meeting chaired by Premier Li Keqiang on Wednesday, the government reaffirmed its stance to maintain a prudent monetary policy while calling for increased lending to small firms and agricultural projects.

The cabinet also vowed to curb unreasonable rises in lending costs by financial institutions, according to the newspaper.

This is the fourth time in the month that the cabinet highlighted the issue of rising borrowing costs.

The government has stepped in to help small firms with tax breaks and financial aids. The latest move came from the central bank, which cut the reserve requirement ratio for banks lending to small firms.

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