Ⅱ. Increasing Financial Support
8. Increasing credit supply for businesses. Financial institutions shall not, without appropriate reasons, ask for early payback of, cut off or delay loans to businesses which have been affected by the epidemic and are encountering difficulties. Banks may deter or renew loans for businesses who have difficulties in repayment. For industries badly hit by the epidemic, including in the wholesale and retail industry, accommodation and catering, logistics and transport, culture and tourism, as well as businesses and entities that have bright prospects but temporarily encounter difficulties, financial institutions shall flexibly adjust relevant credit policies and service methods in accordance with actual conditions, and give support by improving on-lending arrangements, reducing lending rates and implementing credit restructuring. More efforts should be made to increase credit supply for small and micro businesses to ensure that the remaining credit available for these businesses in 2020 will be no less than that of the same period in 2019. (Wuxi Municipal Financial Regulatory Bureau, PBOC Wuxi Branch, CBIRC Wuxi Branch)
9. Reducing financing costs for businesses. We will give full play to the role of credit guarantee funds and emergency on-lending funds, reduce their lending rates and reduce the lending rate of credit guarantee funds by 10 percent on the basis of current levels. Banks are encouraged to lower cost rates to enhance support for micro and small businesses to ensure financing costs for these businesses in 2020 do not exceed those of the same period in 2019. Five large-scale banks are encouraged to reduce universally beneficial comprehensive financing costs for micro and small businesses in lending by another 0.5 percentage points. (Wuxi Municipal Financial Regulatory Bureau, Wuxi Finance Bureau, Wuxi Industry and Information Technology Bureau, Wuxi Science and Technology, Wuxi Commerce Bureau, Wuxi Municipal Bureau of Culture, Radio, TV and Tourism, PBOC Wuxi Branch, CBIRC Wuxi Branch)
10. Promoting the innovation of financial products. Financial institutions are encouraged to innovate and develop special financial products such as "salary loans", "rental loans" and "receivables pledge loans" to meet corporate financing needs given that enterprises may face shortages of funds because they cannot return to work in time due to the outbreak of the epidemic. Special financial products for companies involved in the production of epidemic prevention and control materials, and raw and auxiliary materials can be included in the compensation of "inclusive loans". Financial institutions are encouraged to give full play to the role of online platforms for comprehensive financial services and to improve offline financing consultation and assistance mechanisms. (Wuxi Municipal Financial Regulatory Bureau, PBOC Wuxi Branch, CBIRC Wuxi Branch)
