Regulator calls for stronger financial support for small businesses

The National Financial Regulatory Administration announced on Tuesday that it had recently issued a notice calling for full use of the financing coordination mechanism supporting small and micro businesses in 2026, to guide financial institutions in stepping up support for the development of SMBs as well as private businesses.

The notice said efforts should be made to promote a stable credit supply, an optimized structure, improved quality and sustainability in financial services for small businesses, while enhancing financial support for private enterprises, helping sustain stable economic growth, and stimulating momentum for high-quality development.

The regulator said "a stable credit supply" means encouraging banking institutions to provide credit that matches economic development needs and the financing demands of SMBs and private businesses, so as to achieve effective improvement in loan quality and reasonable growth in loan volumes.

"Optimized structure" refers to strengthening support for first-time borrowers, unsecured loans, and medium- to long-term loans, while increasing lending to incorporated SMBs and focusing support on sectors such as technology, consumption and foreign trade.

"Improved quality" means guiding banks to strengthen risk monitoring and improve the quality of credit assets. "Sustainability" refers to encouraging banking institutions to pursue differentiated development and orderly competition to ensure sustainable business growth.

The regulator further clarified requirements for deepening the financing coordination mechanism supporting SMBs, directing local offices of the financial regulator to improve regular online matching channels for connecting banks with businesses, organize offline outreach activities tailored to local conditions, and guide financial institutions to proactively integrate into local coordination mechanisms. The regulator also urged greater efforts in targeted outreach and financing support for key sectors.

The administration required banking institutions to improve their credit supply systems, enhance support for SMBs and promote the high-quality development of the credit business. Insurance companies were asked to improve management mechanisms, broaden service areas, and increase the supply of insurance services.

The regulator also set out requirements regarding credit information sharing, interdepartmental coordination, policy implementation, and the promotion of best practices, with the aim of improving the effectiveness of financial support measures.