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: On 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 that it will no longer set loan growth rate requirements; instead, it places greater emphasis on optimizing the 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.” When analyzing the reasons why the “Notice” cancels growth rate requirements, Dong Ximiao, Chief Economist of Zhaolian, believes that the key consideration is that the outstanding balance of inclusive loans to small and micro enterprises is growing rapidly. Continuing to set growth rate requirements and strongly pushing for scale expansion could lead to behavioral distortions and risk build-up, thereby affecting the sustainable development of small and micro financial business. Dong Ximiao expects that in the future, financial institutions will further strengthen technology 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 treat private enterprises equally in providing credit services and must not set differentiated conditions based on ownership structures. (Source: Jinshi)
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