On April 8, the China Banking and Insurance Regulatory Commission issued the notice on further strengthening financial support for the development of small and micro enterprises in 2022. The notice defined the annual work goal of banks to support small and micro enterprises: in terms of total amount, continue to achieve the growth rate of inclusive loans and “two increases” in the number of households. In terms of structure, strive to continuously increase the proportion of inclusive loans and CITIC loans. Efforts were made to increase the proportion of first loan households. Large banks and joint-stock banks realized that the number of “first loan households” of small and micro enterprise legal persons in the whole year was higher than that in the previous year. In terms of cost, on the premise of ensuring the incremental expansion of credit supply, strive to reduce the interest rate of new inclusive loans issued by the banking industry in the whole year compared with the same period last year. The CBRC also made it clear that by the end of February 2022, the balance of inclusive loans was 19.67 trillion yuan, a year-on-year increase of 22.16%, 11.15 percentage points higher than the growth rate of various loans; The number of households with loans reached 345058 million.
In the first two months of 2022, the interest rate of newly issued inclusive loans was 5.57%, which has maintained a steady decline since the first quarter of 2018, with a cumulative decline of 2.24 percentage points.
Compared with the notice on further promoting the high-quality development of financial services for small and micro enterprises issued on April 25, 2021:
First, the target of “two increases” of inclusive loans remains unchanged this year. The growth rate of inclusive loans is still not lower than that of various loans and the number of households with loans is not lower than the level at the beginning of the year. The five major banks have been deleted to strive for a 30% growth rate for the whole year.
Second, the requirements of first loan households remain unchanged, and the number of first loan households of large banks and joint-stock banks has increased more than last year.
Third, the requirements for credit loans will be strengthened, and the proportion of credit loans in inclusive loans will continue to increase.
Fourth, in terms of cost reduction, the interest rate of new inclusive loans was required to be stable year-on-year last year, and strive to decrease year-on-year this year.
Fifth, specific requirements for new citizens and regional balance have been added to ensure that the loan balance and number of individual industrial and commercial households will continue to grow in 2022. When large banks and joint-stock banks formulate inclusive credit plans, they should compact the task of investment in underdeveloped areas.
Sixth, in terms of service technology microenterprises, compared with the previously mentioned exploration of diversified financial service models, this time specifically mentioned that banks and external investment institutions explore new business models such as “loan + external direct investment” to move forward financial services in the enterprise life cycle.
This year, the notice continued the requirements of high-quality financial support for inclusive small and micro enterprises in the early stage. Compared with the previous year, this year, the requirements for loan volume growth, number of households, first loan households, science and technology are similar. It also continued to promote the construction of guarantee, credit data and credit environment, reduce credit risk, strengthen the requirements for credit loans and cost reduction, and increase the requirements for paying attention to new citizens and regional balance. On the whole, compared with last year’s focus on structure, this year pays more attention to the weak links in key areas, and the significance of steady growth is stronger.
In the second quarter, we continued to pay attention to the force and effectiveness of steady growth and continued to be optimistic about the bank market.
Individual stocks recommend high-quality urban and rural commercial banks: Bank Of Chengdu Co.Ltd(601838) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Bank Of Jiangsu Co.Ltd(600919) , and continue to recommend: Bank Of Ningbo Co.Ltd(002142) , China Merchants Bank Co.Ltd(600036) , Postal Savings Bank Of China Co.Ltd(601658) , focusing on the value of undervalued targets.
Risk tip: the deterioration of asset quality caused by economic downturn exceeded expectations.
