Balance of Loans for Small Businesses Increased by 40 Billion Yuan Last Year

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Category: Ningbo Business

Published: Thursday, 19 January 2012 18:09

It was learned from the conference of the heads of the city's banking and financial institutions on Jan.13 that the banking sector in Ningbo maintained a sound momentum in 2011 and kept a good interactive relationship with the local economy. By the end of November 2011, the balance of loans for small businesses had reached to 336.756 billion Yuan, up 40.375 billion Yuan as against the beginning of the year.

Last year, Ningbo Banking Regulatory Bureau rendered great efforts to encourage the banking institutions to support small, micro-enterprises. To reduce the financing costs for businesses, the Bureau required banks to set the loan interest rate no more than 30% higher than the benchmark interest rates, and they also put forward some regulatory requirements. For example, banks were not allowed to raise financing costs in disguised forms; besides they pushed banks to innovate on products that are suitable for small and micro businesses. At present, 602 financial products are applicable to small businesses, increased by 120 as against early the year, including 366 non-mortgage products, which accounted for 61% of the products for small businesses. Up to now, there are 8 branches of commercial city banks featuring loans for SMEs. Ten village banks are to be opened, and two new technology bank branches, one logistics bank branch and 15 community bank branches have been set up. More than 300 work teams of financial services for small businesses have been established within its jurisdiction.

In addition, the Banking Bureau has also taken the lead to propose an increase of the bad loan tolerance to 5% for small businesses. By the end of November 2011, small businesses in Ningbo have maintained good asset qualities. And the balance of non-performing loans of small businesses in the banking and financial institutions within its jurisdiction was 3.126 billion Yuan with a slight increase of 0.45 million Yuan compared with that in the beginning of the year. The rate of bad loans was 0.93%, 0.11 percentage lower than that of the beginning of the year. In 2011, the balance of non-performing loans for small business decreased for nine consecutive months, and11 consecutive months for the rate of bad loans.

In financial support for agriculture, we can see a balance of agriculture-related loans of 348.167 billion Yuan by the end of September 2011, increasing by 21.76% of 45.759 billion Yuan since the beginning of the year, which was 5.36% higher than the loans for other fields.

Ling Gan, director of Ningbo Banking Bureau, declared that in 2012 the banking sector of Ningbo would focus on innovation of financial services and fully support regional economic progress while maintaining stability; they will also optimize the credit structure so as to promote the transforming of economic development patterns. Meanwhile, they will fully support the key industries and major projects determined in the "Twelfth Five-Year Plan" of Ningbo to improve and perfect the financial support for key areas such as "six speed-ups", the marine economy and so on. In addition, continuing to strengthen and improve financial services of cultural industries is also listed on the agenda. At the same time stick to the bottom line of risks and ensure steady development of the banking sector.