Circular of the General Office of the China Banking and Insurance Regulatory Commission on Enhancing Financial Services in Favor of Coordinated Resumption of Work and Production across the Industrial Chain
Circular of the General Office of the China Banking and Insurance Regulatory Commission on Enhancing Financial Services in Favor of Coordinated Resumption of Work and Production across the Industrial Chain
Circular of the General Office of the China Banking and Insurance Regulatory Commission on Enhancing Financial Services in Favor of Coordinated Resumption of Work and Production across the Industrial Chain
Yin Bao Jian Ban Fa [2020] No.28
March 26, 2020
To thoroughly implement the major policies and plans of the Central Committee of the Communist Party of China and the State Council for coordinating the promotion of prevention and control of the novel coronavirus pneumonia (COVID-19) epidemic and economic and social development, further enhance financial services for the real economy and boost coordinated resumption of work and production across the industrial chain, relevant matters are hereby notified as follows.
I. Intensifying Financial Support for Core Enterprises in the Industrial Chain
1. Banking financial institutions shall strengthen financial services for core enterprises in the industrial chain, increase working capital loans and other operational and turnover credit support, and provide reasonable credit lines. Banking financial institutions shall support core enterprises to reduce their occupancy of upstream and downstream enterprises' funds in appropriate ways after offering financing by credit, bond or other means to help medium-sized, small and micro enterprises in the upstream and downstream of the industrial chain to solve liquidity fund shortages and other problems.
2. Improving the efficiency of core enterprises' credit fund payments to upstream enterprises. Banking financial institutions shall improve the efficiency of their credit business handling for core enterprises, and pay loans that meet the entrusted payment requirements directly to core enterprises' upstream enterprises. Core enterprises shall use bank credit funds to promptly pay off their upstream enterprises' payables or make advance payments to upstream enterprises, so as to reduce payments in arrears or fund occupancy in the industrial chain, and accelerate upstream enterprises' recovery of funds.
3. Supporting core enterprises to provide deferred payment facilitation for downstream enterprises. Banking financial institutions may help downstream enterprises to acquire goods in advance and reduce their cash flow pressure by promptly handling the discounting of commercial bills which core enterprises receive from downstream enterprises, or handling accounts receivable financing and bills receivable financing for core enterprises to improve the efficiency of their recovery of funds from sales.
4.
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Yin Bao Jian Ban Fa [2020] No.28
March 26, 2020
To thoroughly implement the major policies and plans of the Central Committee of the Communist Party of China and the State Council for coordinating the promotion of prevention and control of the novel coronavirus pneumonia (COVID-19) epidemic and economic and social development, further enhance financial services for the real economy and boost coordinated resumption of work and production across the industrial chain, relevant matters are hereby notified as follows.
I. Intensifying Financial Support for Core Enterprises in the Industrial Chain
1. Banking financial institutions shall strengthen financial services for core enterprises in the industrial chain, increase working capital loans and other operational and turnover credit support, and provide reasonable credit lines. Banking financial institutions shall support core enterprises to reduce their occupancy of upstream and downstream enterprises' funds in appropriate ways after offering financing by credit, bond or other means to help medium-sized, small and micro enterprises in the upstream and downstream of the industrial chain to solve liquidity fund shortages and other problems.
2. Improving the efficiency of core enterprises' credit fund payments to upstream enterprises. Banking financial institutions shall improve the efficiency of their credit business handling for core enterprises, and pay loans that meet the entrusted payment requirements directly to core enterprises' upstream enterprises. Core enterprises shall use bank credit funds to promptly pay off their upstream enterprises' payables or make advance payments to upstream enterprises, so as to reduce payments in arrears or fund occupancy in the industrial chain, and accelerate upstream enterprises' recovery of funds.
3. Supporting core enterprises to provide deferred payment facilitation for downstream enterprises. Banking financial institutions may help downstream enterprises to acquire goods in advance and reduce their cash flow pressure by promptly handling the discounting of commercial bills which core enterprises receive from downstream enterprises, or handling accounts receivable financing and bills receivable financing for core enterprises to improve the efficiency of their recovery of funds from sales.
4.
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