In an effort to expedite the flow of credit directly to grassroots micro and small enterprises, the Financial Regulatory Bureau, in conjunction with the National Development and Reform Commission, has initiated the establishment of a financing coordination mechanism for these businesses. Local governments are also creating their own mechanisms, targeting both the supply and demand sides to collaboratively tackle the financing challenges faced by micro and small enterprises.
China Postal Savings Bank places significant emphasis on this initiative, quickly deploying strategies aligned with the goals of delivering financial support directly to the grassroots level, ensuring quick and easy access, while maintaining reasonable interest rates. The bank convened a meeting of its leadership to review the action plan and held a video conference to promote the financing coordination mechanism. The objective is to make substantial progress in this area and transform the bank into a comprehensive provider of inclusive financial services, continuously building differentiated growth points for small business finance and enhancing its capability to serve the real economy.
The first step is to strengthen organizational leadership. The bank has implemented a “top leader accountability system,” establishing a four-tier working group from the head office down to county branches. This structure is fully integrated into the corresponding layers of the coordination mechanism, facilitating the “Thousands of Companies, Tens of Thousands of Households” outreach initiative to enhance the precision of financial support.
Secondly, the bank is improving its product offerings. It is aligning its services with the three key principles of being precise, fast, and favorable, ensuring a better match for the credit needs of small businesses. Processes are being optimized to enhance efficiency, expediting the implementation of policies around renewed loans without repayment for micro and small enterprises, and reducing their overall financing costs. The bank is also deepening its “1+N” service system, promoting primary bank services, and expanding financial service scenarios to create a “partner bank” for small enterprises.
Additionally, the bank is introducing supportive policies tailored for the financing coordination mechanism. This includes a comprehensive package of support measures in areas such as review and approval processes, performance assessments, pricing policies, and due diligence exemptions. These initiatives aim to enhance the service capabilities of branch offices and continuously improve a long-term effectiveness strategy that encourages lending.
Looking ahead, the China Postal Savings Bank is committed to implementing the decisions and deployments from the Central Committee and the State Council. The bank intends to adopt practical and robust measures to eliminate the barriers to financing for micro and small companies. It will actively support struggling enterprises, mitigate discrepancies between government policies and businesses’ perceptions, and ensure that eligible businesses receive timely loans. By making meaningful strides in inclusive finance, the bank aims to address the dual challenges faced by small enterprises in securing funding and ensure that good initiatives are effectively executed to support the high-quality development of micro and small businesses.
