Huaxia Bank provides innovative financial services for SMEs
Updated: 2015-10-09 10:04
By Jiang Xueqing(chinadaily.com.cn)
|
|||||||||||
Huaxia Bank Co Ltd, a mid-sized Chinese commercial lender, has been offering more innovative financial services for small and medium-sized enterprises, transforming its business.
Zhao Junxue, secretary of board directors of Beijing-based Huaxia Bank, said at a media conference on Thursday: "Our bank implemented the strategy to become a financial service provider for SMEs because the old profit model that relied heavily on net interest margins is unsustainable, thus forcing commercial lenders like us to change our business and client structures."
The bank launched an innovative loan scheme, allowing the SMEs that passed its annual review to enjoy automatic one-year loan extensions for two consecutive years at most, without repaying their loans in the first place.
In the past, the one-year bank loan maturity was usually shorter than the production cycle of small businesses, so a large number of SMEs had to turn to high-cost private lending to repay their loans.
Zhao said, "Our loan scheme has relieved the pressure on small companies to make arrangements for interim financing before the next stage of financing is obtained. It's equivalent to cutting our lending rates for SMEs by 2 percentage points."
As of June 30, more than 3,000 clients had participated in the special loan scheme of Huaxia Bank and saved financing costs of more than 200 million yuan ($31 million). The bank had provided loans to 24,000 small corporate clients. Its outstanding loans to micro and small enterprises had reached nearly 220 billion yuan.
According to the China Banking Regulatory Commission, the outstanding loans of Chinese banking institutions to small businesses had amounted to 22 trillion yuan by the end of June, up 15.5 percent from the previous year.
Related Stories
Bank helps firms with low-cost financing 2015-09-29 09:45
Central bank vows continuity, stability in monetary policy 2015-09-26 10:35
China Everbright launches e-commerce platform 2015-09-25 15:19
China allows int'l banks to issue RMB bonds 2015-09-22 22:02
Central bank should buy local government bonds 2015-09-22 14:05
Today's Top News
FIFA suspends Blatter, Platini from world soccer
Merkel, Hollande appeal to MEPs for EU unity
China adopts IMF statistical benchmark, improves transparency
Fujian governor investigated
China's population to peak in 2025
Beijing says it welcomes TPP deal
Holidayers face hurdles in the homestretch
Snowden: I'd go to prison to return to US
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
British minister's remarks have Britons, Chinese puzzled |
Stepping up |
Rural families still hope for male heirs |
Blue skies over Beijing ... for now |
V-Day parade for 70th WWII anniversary |
Tianjin blasts: Death, damage and bravery |