The People's Bank of China (PBOC) said that it will adopt new schemes aimed at encouraging financial institutions to lend to small businesses under pressure due to the impact of COVID-19, according to a statement posted on its website over the weekend.
Key takeaways
“Will provide capital to qualified banking institutions to spur them to extend more loans to small and micro enterprises under a scheme that will run through June 2023.”
“The measures had been announced by the State Council, or cabinet, on Dec. 15.”
Market reaction
Amid holiday-thinned light trading, USD/CNY is almost unchanged on the day, currently at 6.3521.
