Staff working on the production line of a semiconductor manufacturer in Binzhou City, Shandong Province. [Photo by Chu Baorui/For China Daily]

Small and medium-sized enterprises are the mainstay of the nation’s economic and social development, playing an important role in promoting growth, securing employment, and improving people’s lives.

According to the State Administration for Market Supervision, a total of 14.54 million new market entities were established in the first half of this year, up 4.3% from the same period last year.

Small businesses are the largest and most dynamic group of companies. However, their small size makes them vulnerable to risk. To promote the vitality of the economy as a whole, it is important that the financial sector make greater efforts to better support and support small and medium enterprises. Finance is the lifeblood of the real economy. Banks and insurance institutions need to provide targeted and effective remedies to help temporarily distressed SMEs and help them weather the hard times.

By continuously optimizing and improving the financial services provided to SMEs to ease their burden, financial institutions will be strengthened as an important foundation for stable and healthy economic development. So it’s to their benefit as well.

In some ways, the relationship between the financial sector and SMEs is like a fish in a river. Good water quality increases the number of fish, promotes water circulation, and prevents stagnation.

The National Development and Reform Commission has established a nationwide comprehensive credit service platform for SME loans to alleviate the problem of information asymmetry between banks and enterprises. This is working.

By the end of the second quarter of this year, the balance of microloans was 21.96 trillion yuan ($3.7 trillion), a year-on-year increase of 23.8 times, according to data from the central bank, the People’s Bank of China. percent. This means that inclusive finance plays an important role in helping small businesses grow.

Of course, financial institutions should not only provide “blood transfusions” to companies, but also support SMEs so that they can realize self-reliant “blood production” by guiding them to make the most of their support. there is.

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