Loan quota raised to aid SMEs (Aug 6)

Financing difficulties of small- and medium-sized enterprises (SMEs) have seemingly caught the attention of policymakers.

It was first reported that small- and medium-sized banks were expected to be set up to increase loans to small enterprises.

Then the news has been that the People's Bank of China had agreed to raise the credit quota by 10 percent for local commercial banks, compared to a 5-percent increase for national lenders. Such differential credit adjustment is a manifestation of the central bank's intention to ease the impact the current credit crunch exerted upon SMEs.

For more reading: http://www.chinadaily.com.cn/bizchina/2008-08/06/content_6909170.htm, http://www.chinadaily.com.cn/bizchina/2008-08/06/content_6908579.htm