Circular of the China Banking Regulatory Commission on Printing and Distributing the Guiding Opinions on the Small Enterprise Loan Business of Banks
Circular of the China Banking Regulatory Commission on Printing and Distributing the Guiding Opinions on the Small Enterprise Loan Business of Banks
Circular of the China Banking Regulatory Commission on Printing and Distributing the Guiding Opinions on the Small Enterprise Loan Business of Banks
(Yin Jian Fa [2005] No.54)
July 25, 2005
All banking regulatory bureaus, policy banks, State-owned commercial banks and joint-stock commercial banks:
For the purpose of promoting and guiding the financial services provided by all banks to small businesses, and gradually adjusting and improving the structure of credit assets, the China Banking Regulatory Commission has formulated the Guiding Opinions on the Small Enterprise Loan Business of Banks, which are hereby printed and distributed to you.
All banking regulatory bureaus shall forward these Guiding Opinions to all banking regulatory sub-bureaus, urban commercial banks, urban credit cooperatives, rural commercial banks and rural cooperative banks under their jurisdiction.
All banks shall come up with specific implementing measures and business processes by reference to these Guiding Opinions and in light of the actual situations of the areas under their respective jurisdictions. Any problem or suggestion that may arise during the implementation of these Guiding Opinions shall be reported to the China Banking Regulatory Commission timely.
Guiding Opinions on the Small Enterprise Loan Business of Banks
Article 1 For the purposes of promoting and guiding all banks to continuously improve their financial services to small enterprises, and gradually adjusting and optimizing the credit asset structure, these Guiding Opinions are formulated in accordance with the Law of the People's Republic of China on Commercial Banks, Banking Supervision Law of the People's Republic of China, Opinions of the State Council on Encouraging, Supporting and Guiding the Development of Individual and Private Economy and Other Non-Public Sectors of the Economy (No. 3 [2005] of the State Council) and other relevant regulations and provisions.
Article 2 The "small enterprises" as mentioned in these Guiding Opinions generally refers to the small enterprises and individual business households under various ownerships and organization forms. The small enterprises shall be defined according to the Interim Provisions on the Standards for Medium and Small Enterprises (No. 143 [2003] of the State Economic and Trade Commission), the Interim Measures for Statistical Definitions of Large, Medium and Small Enterprises (No. 17 [2003] of National Bureau of Statistics) and the Supplementary Standards for Some Large, Medium and Small Non-industrial Enterprises (Draft).
The term "loans" as mentioned in these Guiding Opinions generally refers to various on-balance-sheet and off-balance-sheet credit and financing businesses such as loans, trade financing, discount, tally, loan commitment, guaranty, letter of credit, as well as the acceptance of instruments.
The term "banks" as mentioned in these Guiding Opinions includes the policy banks, commercial banks and rural cooperative banks. The urban credit cooperatives may carry out small enterprise loan business according to these Guiding Opinions.
Article 3 Where a commercial bank engages in the small business loan business, it shall observe the principle of managing the business independently, assuming sole responsibility for its profits or losses, independently bearing risks, and conducting market-based operations. It shall target at the sustainable development of the commercial-nature-based small business loan business.
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