Vice premier urges healthy development of small financial institutions
Vice Premier Wang Qishan called for more efforts to promote the healthy development of mid- and small-sized financial institutions to allow them to better serve the real economy.
"Financial institutions should implement a prudent monetary policy, as well as work to ensure financial stability and promote the country's economic growth," Wang said during an inspection tour of the cities of Zhengzhou and Xuchang in central China's Henan province.
Credit has long been a headache for the country's small companies, as major state-owned banks tend to favor lending to large companies.
The government has encouraged the development of small financial institutions as part of its efforts to strengthen support for small- and micro-sized companies.
"Local governments should intensify their efforts to make small financial institutions more willing to issue loans to small companies and agricultural projects," Wang said.
Small firms and agriculture play an irreplaceable role in fostering economic growth, increasing employment and maintaining social stability. Lending to the two sectors should grow at a rate higher than the average, Wang said.
Wang also asked local financial authorities to guard against risks and crack down on illegal fundraising in order to ensure a stable financial market.
Meanwhile, he urged financial institutions to improve their services and avoid blindly seeking cross-regional expansion.
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