The General Office of the National Financial Regulatory Administration (NFRA) has recently issued the Circular on Effectively Carrying out the Work on Inclusive Credit in 2024 (the "Circular").
The Circular clarifies the overall objective for inclusive credit in 2024, that is, to maintain quantity, stabilize price, and optimize structure. The Circular requires banking financial institutions to improve the institutions and mechanisms, and maintain the resource input for inclusive credit business by separately listing credit plan, giving priority in performance assessment, adopting preferential pricing for internal fund transfer or by other means; enhance digital operation capabilities, optimize credit approval models, and build a "credit +" service model. Meanwhile, actions will be taken to continuously expand the scope of rural collateral and pledge, maintain the full coverage of basic financial services in rural areas, and promote the upgrading of basic financial services in rural areas; provide greater convenience in financial services for specific groups such as the disabled and the elderly; refine the standards, mechanisms, and procedures for due diligence and liability exemption to raise operability. The Circular also specifies the requirements for credit information sharing, financing linkage, summary of experience, and publicity, and urges better collaboration to enhance the sense of gains small and micro enterprises, agriculture-related business operators and key assisted groups in financial services.