SCIO briefing on reform and development of China's banking and insurance sectors in 2020
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E-mail China.org.cn, January 25, 2021
China Daily:
The market shows that after the government and regulators took anti-monopoly measures on internet platform enterprises, banks became reluctant to lend and even suspended loans to private enterprises in internet-related fields. Is this true? What's the comment from the regulatory agencies? Thank you.
Liang Tao:
Let me answer this question. The private economy is an indispensable power in the promotion of economic development in China. Private enterprises are important components of the economy. The financial regulator has always supported the development of the private economy, treated the private economy as a key issue, guided financial institutions to offer all-round financial services to private enterprises, and could be credited with having achieved great accomplishments.
Recently, the financial governance department arranged talks with several internet platform companies such as the Ant Group, acknowledging their financial technological innovations, efficient financial services, and inclusiveness. However, they also pointed out their problems such as arbitrage through irregular governance, monopolizing, and impairing customers' interest. According to the basic requirements for strengthening anti-monopoly regulations and preventing capital from growing in a disorderly manner, the financial governance department has taken a series of regulatory measures, clearing up and rectifying the situation. These measures are not only in accordance with the law of market economy development such as upholding anti-monopoly and anti-illegitimate competition as well as the requirements of the rule of law, but also meet the fundamental interests of our people and all market entities. They also help private companies to sustain long-term, steady, and healthy development. Of course, those measures have not been taken to target private companies or a specific company, and will not affect the normal business development of relevant companies. As for the question you asked just now regarding whether some banks stinted or altogether stopped providing loans to private enterprises in some sectors, we indeed found several cases where this was the case via our investigation. We consider that this behavior is not consistent with the "two unwaveringly" requirements, and should be rectified. The CBIRC will encourage banks and insurance institutions to cooperate with internet platform companies, including those in question, according to laws and regulations. Policies for financial support remain unchanged and will not be reduced.
We noticed that some internet platform enterprises have been quick to rectify their behaviors after being questioned. According to preliminary results, we believe that through regulation and rectification, these internet platform enterprises will stick to the goal of serving the real economy and the people, and uphold fair play in the market. They must innovate while also keeping to the right path under the principle of serving the real economy, adhering to prudential supervision so as to become an important force in supporting the national economy and promoting domestic and international circulations. Thank you.
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