BEIJING (Reuters) - China's financial regulator on Friday issued measures that urge commercial banks to further improve credit management, to better serve the real economy.
The National Financial Regulatory Administration issued measures on the management of banks' fixed asset loans, working capital loans and personal loans, according to statements released on the regulator's website.
The measures, which will come into effect on July 1, 2024, aim to "urge commercial banks to further improve the level of refinement and standardization of credit management and improve the quality and efficiency of the financial industry serving the economy," the regulator said.
The measures said banks should reasonably determine the internal performance evaluation targets based on effective credit demand, and should not engage in "vicious competition" and make unreasonable lending targets.
The measures will also broaden the uses and scope of fixed asset loans and working capital loans. The loan approval process for working capital loans of small and micro enterprises and personal loans of less than 200,000 yuan ($27,857.87) will be simplified, it said.
Additionally, banks should make agreements with borrowers in loan contracts that the latter would be held accountable if they are found to have use personal business loans in the property market.
($1 = 7.1793 Chinese yuan renminbi)