In 2020, loans provided to small and micro firms by Beijing's banking industry reached 1.55 trillion yuan (about $231.79 billion), up 13.7% year-on-year, and 3.2 percentage points higher than the average rate across all types of loans. Loans were granted to some 376,800 small and micro firms, 64,100 more than the previous year, as announced by the Beijing Office of China Banking and Insurance Regulatory Commission (CBIRC) on Feb. 25.

The inclusive loan balance of small and micro firms below the 10-million-yuan credit line has seen a year-on-year increase of 25.8%, 15.3 percentage points higher than the average among other types of loans. Some 70,000 more firms received such inclusive finance lending compared with the same period in the previous year. The rate of completion in Beijing's overall credit plan exceeded 150%.

Inclusive loans granted by local branches of state-owned banks in Beijing also increased by 57.26% year-on-year, the fastest among other types of loans.

CBIRC's Beijing Office has been working to reduce the average loan balance among the city's small and micro firms, expand the scope of such financing services, and optimize its supply structure. More than 90% of small and micro firms successfully received loans upon application last year.

The average loan balance of small and micro firms in Beijing stood at 4.39 million yuan by the end of 2020, a year-on-year decrease of 174,600 yuan. The average inclusive loan balance only reached 2 million yuan.

CBIRC's Beijing Office has ordered banks in the city to introduce more credit loan products to help ease the financial burden faced by small and micro firms and address their lack of collateral. Credit loans for small and micro firms in 2020 grew by 22.8%, an increase of 2.29 percentage points year-on-year.

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