China regulator calls for more lending to small firms

China's banking regulator is calling on banks and other lenders to provide more loans to small enterprises, highlighting growing government concerns about the need to boost growth and create jobs.
Financial institutions must "make maximum use" of a five-percent increase in the loan quota, focusing the money on small enterprises, the China Banking Regulatory Commission (CBRC) said in a statement on its website.
They must also make sure that lending to those companies rises faster than overall loan growth, according to the statement, which was posted Tuesday.
Interest rates on the loans should be set at a level that limits risks but "supports the sustainable development of the small enterprises," it said.
The banks were also told to open more outlets where private business is active and provide more innovative funding channels, such as allowing equity shares and intellectual property rights as loan security for those enterprises.