The State Administration of Financial Supervision adjusts micro and small enterprise financial service requirements, cancels loan growth targets, and improves credit asset quality

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ME News, May 20 (UTC+8): The Financial Regulatory Authority recently issued the “Notice on Doing a Good Job in Financial Services for Small and Micro Enterprises in 2026.” Industry experts say that one of the biggest highlights of the “Notice” is that it will no longer set requirements for loan growth rates, but instead will place greater emphasis on optimizing credit structure and promoting sustainable business development. This is expected to help shift small and micro enterprise financial services from “scale-driven” to “quality-first.” Analyzing the reasons why the “Notice” cancels growth-rate requirements, Dong Ximiao, Chief Economist of Zhaolian, believes that this is mainly because inclusive loans to small and micro enterprises have been growing rapidly in outstanding balance. If growth-rate requirements are still set and scale expansion is strongly pushed, it could lead to distorted behavior and risk accumulation, thereby affecting the sustainable development of small and micro finance business. Dong Ximiao expects that, going forward, financial institutions will further strengthen technological and innovative financial services for small and micro enterprises, innovate and optimize financial products in the consumer sector, and enhance financial services for foreign trade enterprises. Financial institutions will also provide credit services to private enterprises on an equal basis and must not set differentiated conditions based on ownership. (Source: Jinshi)
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