China banking regulator eases lending rules for small businesses
The China Banking Regulatory Commission has eased regulatory capital requirements on the small business lending activities of banks, effectively carving these out from loan-deposit ratios. The move looks set to bolster lending to small enterprises while also giving the country’s central bank more room to continue its tightening stance on monetary policy.
The China Banking Regulatory Commission (CBRC) has released new rules governing the lending activities of banks to small- to medium-sized enterprises (SMEs) that seek to lower banks' capital requirement and make it potentially cheaper for banks to fund these assets under Basel II. The move is relevant to loans of less than 5 million yuan ($772,000). Some banks have already been building up lending
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