Inclusive finance favorable to SMEs

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A staff member works on the production line of a semiconductor manufacturer in Binzhou, Shandong province. [Photo by Chu Baorui/For China Daily]

Small and medium-sized enterprises are the main force in national economic and social development and play an important role in promoting growth, creating jobs and improving people’s livelihoods.

According to the State Administration for Market Regulation, a total of 14.54 million new market entities were established in the first half of the year, 4.3% more than the same period last year.

SMEs are the largest and most dynamic group of companies. However, due to their small size, they are vulnerable to hazards. It is important that the financial sector make more efforts to better help and support SMEs in order to foster the vitality of the whole economy. Finance is the engine of the real economy. Banking and insurance institutions should provide targeted and effective relief measures to support SMEs temporarily in difficulty in order to help them overcome the difficulties.

By continuously optimizing and improving the financial services provided to SMEs to lighten their burdens, financial institutions will be consolidated as an important foundation for stable and healthy economic development. It is therefore also in their interest.

In a way, the relationship between the financial sector and SMEs is like a fish in a river. The better the water quality of the river, the more fish there are, which promotes water circulation and prevents it from stagnating.

The National Development and Reform Commission has established a national comprehensive credit service platform for SME financing to help alleviate the problem of information asymmetry between banks and enterprises. It has an effect.

Data from the People’s Bank of China, the central bank, shows that at the end of the second quarter of this year, the balance of small and micro loans was 21.96 trillion yuan ($3.07 trillion). , a year-over-year increase of 23.8 percent. Which means that inclusive finance plays a key role in helping SMEs grow.

Of course, financial institutions should not only “transfuse blood” for companies, but also help companies to achieve independent “blood production” by offering advice to SMEs so that they can make the most of the support provided.

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