Small Business Financing Regulations Handbook

Author: Beijing Banking Regulatory Commission
Publisher:
Publish Date: 2006-04-01
Features: Financing small enterprises has long been a challenge and weakness for banks. Due to insufficient creditworthiness and smaller scale, banks find it quite difficult to finance small enterprises. This book focuses on summarizing and compiling relevant regulations and documents from the People's Bank of China, the China Banking Regulatory Commission, and other departments in recent years, making it highly authoritative and practical. In recent years, Chinese small enterprises have played an increasingly important role in promoting national economic development, ensuring moderate economic growth, driving independent innovation, alleviating employment pressure, and maintaining social stability. However, the contradiction between the moderate development of small enterprises and their financing difficulties has become increasingly prominent. Practice has shown that, whether in developed or developing countries, financial institutions, especially commercial banks, tend to be reluctant to lend to small enterprises when subjective risk perception is high, comprehensive returns are low, and favorable financing policies are lacking. Adhering to the principle of "institutional priority," this bureau has compiled and organized relevant regulations and policies for small enterprise development, incorporating and learning from some foreign small enterprise policies. The book primarily covers laws and regulations related to promoting small enterprise development, credit risk management, and international experience. It is hoped that the publication of this book will contribute to advancing small enterprise financing onto a more legal and standardized track.