Foreign lenders back Shanghai despite headwinds
Foreign banks in Shanghai have provided strong support to small businesses to ensure industry and supply chain stability and help companies protect themselves against risks during the latest COVID-19 outbreak in the center. financial.
The Shanghai office of the China Banking and Insurance Regulatory Commission announced on April 21 that it had issued a notice urging banks to increase lending to meet the funding needs of pandemic control and recovery efforts. resumption of work and production. The regulator has also encouraged banks to reduce overall corporate funding costs by further reducing interest rates and fees.
Foreign banks responded eagerly to the call from the regulator.
HSBC Bank (China) Co Ltd Shanghai Branch has launched an inclusive finance program targeting micro and small enterprises (MSEs). The bank set up a 1 billion yuan ($148.61 million) credit fund, accelerated small business loan approvals and provided financing at favorable prices. and encouraged the supply of loans through smart supply chain finance and cooperation with guarantee companies.
Foreign banks operating in Shanghai have also paid close attention to the shocks brought by COVID-19 to upstream and downstream industrial and supply chains and responded to customer needs in a timely manner.
BNP Paribas (China) Ltd has issued 865 bankers’ acceptances worth more than 400 million yuan for a global auto parts supplier, which has struggled to provide original contracts and documents during the COVID-19 outbreak. 19. The commercial lender was successful in conducting business background checks through measures that included researching information on the local tax authority website.
The supplier is a core business in the automotive supply chain. By issuing bankers’ acceptances for the company, BNP Paribas ensured the normal collection of more than 100 MPEs and the smooth functioning of supply chains.
Commerzbank AG Shanghai Branch has partnered with a domestic wind turbine manufacturer and supply chain platform to promote digital supply chain finance innovation. Commerzbank has become the first foreign bank to launch China’s supply chain bill discounting business at Shanghai Commercial Paper Exchange Corp Ltd during the pandemic and has so far provided financing worth about 3.26 million yuan to enterprises of upstream and downstream parties in the supply chain.
In addition, foreign banks have also made great efforts to ensure stable supply and safeguard people’s livelihoods.
Standard Chartered Bank (China) Ltd Shanghai Branch has granted a one-month deferral of loan principal and interest repayments to an imported fruit supplier to ease financial difficulties as the company suffered a slowdown in debt collection. accounts receivable due to COVID-19.