Nihon Keizai Shimbun:
A lot of small and micro-sized companies have been hit hard by the epidemic. Given that, some local regulatory authorities have introduced policies to moderately raise the tolerance for non-performing loans to small and micro companies. What is your take on these policies? Thank you.
Thank you for your question and my answer will cover three aspects. First, regulatory rules must maintain stability, which is the minimum requirement for us when conducting prudent regulation. Our main aims are to ensure that financial institutions have the ability to avert risks, and to safeguard the stable functioning of the financial system, preventing it from being easily affected by external shocks. Second, for a time, banks may face pressure in accomplishing targets set by financial sector regulators when their operating environment suddenly changes, especially by force majeure. Third, in the face of the epidemic situation, the China Banking and Insurance Regulatory Commission will follow a realistic and pragmatic approach, and moderately raise the tolerance for banks in regions deeply affected by the epidemic, which have yet to meet their targets, by providing them with a grace period or making flexible arrangements for regulatory measures. Thank you.