Micro and Small Enterprises

Giving full play to the role of policy-based finance, the Bank has continuously stepped up its support for micro and small enterprises (MSEs). It has made great efforts to deepen the reform and innovation in providing financial services to MSEs. 

In terms of service mechanism, the Bank has established the Inclusive Financial Service Department, which is in charge of MSE financing planning and management. It has experimented in setting up inclusive financial service units across domestic branches in a bid to establish an MSE service mechanism that is aligned with its own characteristics.  

The Bank works to promote financial service innovation by creating platforms for bank-government cooperation, bank-guarantor cooperation and bank-insurer cooperation to leverage advantageous resources of all parties and take diversified guarantee measures to control the credit risk of MSEs.  

In terms of product innovation, the Bank has focused on developing wholesale microfinance business, including on-lending services for MSEs. It has been cooperating with local small and medium commercial banks to come up with MSE credit models in line with its own characteristics. Furthermore, the Bank has carried out innovations in MSE financial services based on big data. For instance, it has developed featured supply-chain finance products and explored the designing of direct lending products specifically for development areas and comprehensive service platforms for foreign trade where MSEs are concentrated. 

In terms of measures taken, the Bank has improved its performance assessment mechanism, reserved special credit resources and placed MSEs as the priority in its allocation of bank-wide resources. It has also improved interest rate pricing management, and set up a cost control mechanism for the MSE on-lending model. At the same time, the Bank has improved the MSE credit rules system, and launched a series of MSE-related regulations, including renewal of loans without repayment of loan principal and liability exemption after due diligence for MSE credit business. Moreover, it has put in place a differentiated customer access system for MSE on-lending, and strengthened ledger management for MSE on-lending services to ensure that on-lending capital flows to MSEs with real and reasonable financing needs. 

By the end of 2017, the Bank had registered a loan balance from MSE credit business of RMB 323.881 billion, up by 30.22% or RMB75.158 billion over the beginning of the year.