State-owned banks ramp up efforts to better support economy

Large State-owned commercial banks in China proactively adjusted their credit structure and gave targeted support to key areas and weak links in the economy.

As of the end of 2021, Bank of China Ltd issued credit totaling over 820 billion yuan ($129.3 billion) to nearly 36,000 technology companies. The balance of loans granted to strategic emerging industries increased by 299.3 billion yuan or 135 percent from the beginning of the year. Inclusive loans granted to micro and small enterprises grew by 305.9 billion yuan.

"Although China is under the triple pressures of shrinking demand, disrupted supply and weakening expectations, the fundamentals of our economy remain unchanged, and they will maintain long-term growth," said Liu Jin, vice-chairman and president of Bank of China.

During recent State Council executive meetings and a meeting held by the State Council's financial stability and development committee, China launched a series of important measures.

"Like strong winds in the Spring, these measures are making the environment for development warm and boosting market confidence. In addition, they will provide good development opportunities for the domestic banking sector. Bank of China will not only draw support from the policies but also look forward to proactively creating momentum for economic development," Liu said.

The bank will steadily increase lending to infrastructure construction, smart manufacturing, green manufacturing, high-end equipment manufacturing, rural revitalization and projects promoting green and low-carbon development.

Industrial and Commercial Bank of China Ltd also took precise and targeted actions to support the major areas and weak links of the real economy.

Liao Lin, president of ICBC, said on Wednesday the balance of its loans to the manufacturing sector exceeded 2 trillion yuan in 2021, up 319.7 billion yuan from the previous year.

Last year, the balance of loans to key State-supported high-tech fields surpassed 1 trillion yuan, and the balance of financing for "specialized, sophisticated, distinctive and innovative" enterprises reached nearly 100 billion yuan.

ICBC's green loans grew 34.4 percent, with the total amount exceeding 2.4 trillion yuan. Inclusive loans grew by more than 50 percent for the year.

Similarly, Agricultural Bank of China Ltd prioritized credit resources for key areas such as manufacturing, scientific and technological innovation, green and low-carbon development, and inclusive finance.

ABC granted 673.8 billion yuan of new loans in 2021 to major projects under the 14th Five-Year Plan (2021-25). By the end of last year, the balance of its loans for strategic emerging industries exceeded 850 billion yuan. Its green credit balance was 1.98 trillion yuan, an increase of more than 30 percent year-on-year, said Zhang Qingsong, vice-chairman and president of the bank.