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Duan Bingde

Tackling small and micro enterprise financing difficulties

2014-03-17

The executive order is not very helpful for pushing banks to offer more credit support to small and micro enterprises. However, it may cause banks to behave in a distorted way. The order will encourage and guide commercial banks to make use of the market mechanism.

Though the currency supply and the total amount of social financing has maintained rapid growth since the beginning of the year, small and medium-sized enterprises still face financing difficulties.