PBOC Intends To Step Up Support For Smaller Firms
Chinese central bank faces difficulty in channeling credit to small firms, vital for economic growth and employment at a time of rising trade tension, despite has been pumping out more cash to spur bank lending. As it was reported, the People's Bank of China (PBOC) aims to improve its policy transmission mechanism to further step up financing support for smaller firms.
In its statement, China’s central bank said, that it will treat state and private firms equally on policies including credit and bond issuance. Yi Gang (the PBOC governor) stated, that the government would coordinate monetary, fiscal and regulatory policies to "stimulate financial institutions' enthusiasm", and would build a sustainable financing model for small firms.
The China’s central bank has cut reserve requirements for banks three times this year to boost liquidity, with further reductions widely expected.