OREANDA-NEWS. November 01, 2011. To follow the state’s requirement of providing financial support for the development of small and micro enterprises, as a major domestic bank servicing small enterprises, Agricultural Bank of China Limited (ABC) has increased support for small enterprises by taking various measures such as granting more loans, reducing costs, exploiting potential and launching new products. Besides, ABC has actively innovated financial products, reported the press-centre of ABC.

For example, it has introduced Simple Loan, Self-service Revolving Loan, Factory Building Loan and other products based on the demand of small enterprises for "short-term, small-value, frequent and urgent" loans. 40% of newly granted loans to small enterprises are Simply Loan, which has been received with great applause.

In consideration of the current economic and financial situations and in line with the requirements of latest national policies, ABC has further improved financial services for small enterprises and accelerated the implementation of aid measures to support the sound development of small enterprises. Take ABC Zhejiang Branch for example, it has timely come up with specific measures for further supporting the sound development of small enterprises and formulated an aid plan covering "Six aspects and 21 policies", based on the actual development needs of local small enterprises.

ABC has strived to put more credit funds into SMEs and ensure the safety of their capital chains. For those SMEs whose products are needed in the market and have a bright prospect, and whose operational management meets the requirements for transformation and upgrading, ABC has never detained or withdrawn loans even when they are under temporary financial strain. All the mature loans recovered are re-used immediately for SMEs in principle.

ABC has adopted differentiated credit policies to make financial services more suitable to different SMEs. Zhejiang Branch has innovatively launched four credit policies of "differentiated admittance policies, differentiated authorization policies, differentiated approval processes and differentiated non-performing loan tolerance". ABC has promoted the "one-stop approval" mode for small enterprise credit based on the 230 small enterprise financial centers set up since 2009. Those professional service platforms make financial support more targeted.

ABC has reduced SME financing costs, strengthened the management of loan interest rates and surrendered part of its profit to enterprises. After full consideration of their bearing ability and production and operation status, ABC will, in principle, not raise or only raise slightly the interest rate for small enterprise loans in the fourth quarter, with an upward fluctuation of no more than 30% of the benchmark interest rate. In addition, imposing extra burden on enterprises by increasing interest rate in disguised forms or tie-in wealth management products is strictly prohibited. Financing from private lending agencies and staff members' evolving in any fund-related activities with financial brokers in any form are also forbidden.

ABC has broadened financing channels for SMEs and provided great support for their equity financing, fund-raising with debt financing instruments, finance lease and overseas financing. Provincial branches have built investment banking teams to help operating banks provide services for enterprises' direct financing. Besides, on condition that risks are under control, ABC has expanded the cooperation with guarantee institutions and small loan firms and raised credit facility and guarantee limits properly.

ABC has prevented financial risks by encouraging the growth of some sectors while discouraging the expansion of others, and being selective out of good faith. ABC has helped with SMEs' entrepreneurial innovation, transformation and upgrading, and strictly controlled the aggregate credits of industries with high energy consumption, high pollution and over-capacity, hence helping to optimize the customer structure and credit structure of SMEs. ABC has conducted strict post-lending fund management to help enterprises improve their fund operation and management. It has also paid close attention to their fund flow, to prevent that credit funds are used for private loan, stock market, real estate and other high-risk areas.