AmiSight 3/10: Does China Have the Right Idea About Small Business Lending?
In international news, it is interesting to see that China is trying to increase lending to small businesses by 40% in 2022 from their large commercial banks. The Chinese government is helping to facilitate this by cutting rates, reducing fees, and promoting mid/long-term lending to the manufacturing sector.
It is said that the main reason for this move is to help stabilize employment. As a safety measure against systematic risks, they will also set up a financial stability guarantee fund.