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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 Report, 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 a major highlight of the "Notice" is the removal of loan growth rate requirements, instead placing greater emphasis on optimizing credit structure and sustainable business development, which is expected to promote a shift in small and micro enterprise financial services from "scale-driven" to "quality-first." Analyzing the reasons for canceling growth rate requirements in the "Notice," Dong Ximiao, Chief Economist of Zhaolian, believes that the main consideration is that the balance of inclusive small and micro enterprise loans is growing rapidly. Continuing to set growth rate requirements and pushing for scale expansion could lead to behavioral distortions and risk accumulation, affecting the sustainable development of small and micro finance businesses. Dong Ximiao predicts that in the future, 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 without discrimination, and shall not set differentiated conditions based on ownership structure. (Source: Jinshi)
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