2. Lending policy is a statement of a lending
Institution, which depicts the philosophy,
guidelines and standards the employees of
such institution follow in granting or refusing
a loan request.
3. PBOC has encouraged banks to have a diversified
portfolio by increasing their services to the private sector
as well as to individual consumers.
Another step towards the reforming of the banking sector
has been the policy of PBOC to decontrol the interest
rates. So now the interest rate will be market-based.
Hence the lending rates now depend on the market supply
and demand.
In September, 2000 PBOC liberalized the foreign currency
loans and large deposits ( US $3 million dollars and over).
However rate of loans below 3 million dollars remains
under the control of the central bank.
The market determined interest rates will first be
introduced in the rural areas followed by the cities.
4. In February, 2013 the lending rate is 6% as
reported by the People’s Bank of China.
It is the weighted average rate of interest
charged on loans by the three major banks to
private individuals and companies.
5.
6. The People’s Bank of China it has raised the
reserve ratio ten times in 2007 and eleven times
since the beginning of 2010.
In 2013, People’s Bank of China has lowered the
reserve ratio by 50 basic points for commercial
lenders to inject more market liquidity and shore
up the economy.
Thus for the commercial lenders, the reserve
requirement stands at 20% and for small and
medium –sized lenders it has reduced to 16.5 %.
7. Personal Loan
Personal Business Loan
Corporate Loan
Fixed Asset Loan
Working Capital Loan
Loan with Custody of Export Rebates
Account
Real Estate Loan
Entrusted Syndicated Loan
8. Personal Loans
Foreign Exchange Loan for studying abroad
Personal loan of housing for business
Personal Housing Provident Fund
Personal loan for consumptive/commercial car
Personal Investment and Business loan
Corporate Loan
Syndicated Loan
9. In 1994, the State Council of People’s Republic of
China established three policy banks to take over the
governments policy lending.
China Development Bank, the Export-Import Bank
and the Agricultural Development Bank are these
three policy banks.
These three banks have the function of promoting
and financing the construction of infrastructure,
promoting exportation and food productions.
10. 63% of its loan balance consists of lending in sectors such
as coal, electricity, oil, transportation, agriculture, water
resources, telecommunications and public infrastructure.
This bank is the country’s largest provider of student
loans.
It also provides other types of loans such as low-income
housing loans, loans to small and medium sized
enterprises.
Emergency Loans
Special Loans
11. The People’s Bank of China being the central
bank of this country, controls the CRR,
interest rate, and issues all other guidelines
with respect to lending facility provided by
the banks in this country.
The central bank has accordingly established
some policy banks, which are in charge of
providing loans to the priority sectors. The
other commercial banks provide loans to
various sectors of the society.
