LENDING & CREDIT | Staff Reporter, China

Chinese banks financing more foreign trade

Outstanding trade financing between banks and China’s exporters and importers amounted to US$469 billion in September, 34% higher year-on-year.

The percentage was 17.8 points higher than the average growth of loans in the banking sector in both RMB and foreign currencies, said the China Banking Regulatory Commission (CBRC), the banking regulator.

The financing volume comprised both RMB-denominated and foreign currency-denominated financing from banks.

CBRC has encouraged banks to step up lending support for China’s exporting and importing enterprises, and set reasonable interest rates and service charges. These are efforts to reduce companies’ financing costs and boost foreign trade.

Facing pressure from falling overseas orders, the State Council or China’s Cabinet, approved multiple measures to stabilize foreign trade in September. The package included urging banks to expand trade financing for small firms and increase credit to exporters.

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