China regulator tells banks to ‘significantly cut’ lending rates for small businesses in third-quarter: sources

BEIJING (Reuters) – China’s financial regulator has told banks to “significantly cut” lending rates for small firms in the third quarter in comparison with the first quarter, two sources with direct knowledge of the matter told Reuters on Monday.

In a non-public notice issued by the China Banking and Insurance Regulatory Commission (CBIRC) in late June, the regulator also asked banks to increase real-time monitoring of lending rates, the sources said.

Banks were also told to keep asset quality and overall costs of their small business lending at a reasonable level, said the sources who declined to be named as they were not authorized to speak to the media.

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