China Merchants Bank yesterday set up a small enterprise center in Suzhou in nearby Jiangsu Province to target small enterprises with an annual revenue of less than 5 million yuan (US$726,417).
The center will work closely with branches of the bank to expand business and its setup is a key step in Merchants Bank's strategic transformation, said Ma Weihua, president of the Shenzhen-based lender.
Merchants Bank won't curb loans for small businesses because "small enterprises financing is emerging as a fast-growing business line for banks. Entering the market can help the bank diversify risks and income channels."
The sixth biggest bank in China yesterday signed credit deals with 20 small enterprises and it said its loans to these small and medium firms will grow faster than its total lending this year.
Despite the Chinese central government's tighter monetary control this year, the bank expects its total lending to still grow 11.4 percent this year after a 19-percent growth last year.
The SMEs accounted for 78.9 percent of the lender's corporate clients in the past year, and borrowed outstanding loans of 189.5 billion yuan (US$27.5 billion).
(Shanghai Daily June 19, 2008)
