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 message: 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 key highlight of the “Notice” is that it will no longer set requirements for loan growth rates, but instead places greater emphasis on optimizing credit structure and promoting sustainable business development. This is expected to drive small and micro enterprise financial services to shift from “scale-driven” to “quality-first.” Analyzing the reasons why the “Notice” cancels the loan growth rate requirements, Dong Ximiao, Chief Economist of Zhaolian, believes this is mainly because the balance of inclusive loans to small and micro enterprises is growing quickly. If growth rate requirements are continued and scale expansion is strongly pushed, it may lead to behavioral distortions and risk accumulation, which would affect the sustainable development of small and micro finance businesses. Dong Ximiao expects 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 strengthen financial services for foreign trade enterprises. Financial institutions should 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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