China's banking, insurance sectors to strengthen support for real economy

China's banking and insurance sectors will ramp up support for the real economy and unveil measures to prevent financial risks in 2021, the country's top banking and insurance regulator said on Jan 27.

Banking institutions will further improve their financial services and shore up small businesses with more loan issuances, according to the China Banking and Insurance Regulatory Commission.

These institutions issued new loans worth 19.6 trillion yuan (about $3.03 trillion) last year, up by 12.8 percent year-on-year. A total of 2.2 trillion yuan of new loans flowed to the manufacturing industry, data from the commission showed.

To prevent and mitigate financial risks, the commission urged the banking sector to keep the macro leverage ratio stable and strengthen the disposal of non-performing assets.

Calling for efforts to improve risk management and impose more severe crackdowns on illegal financial behaviors, the commission vowed to tighten regulation on shadow banking and internet finance.

It will also seek multiple approaches to replenish the capital for small and medium-sized banks, including encouraging local governments to issue special bonds.