China’s central bank said on Wednesday it would make its monetary policy flexible, targeted and appropriate in 2021, focusing on supporting small firms as the economy recovers, reported Reuters.
The People’s Bank of China (PBOC) will continue to rely on structural policy tools and credit policies to support small enterprises and extend deferred loan repayments for small businesses, it said in a statement on its website.
The PBOC said it would deepen reforms of its loan prime rate, while promoting deposit rate liberalization. It will also step up regulation of financial activities by internet platforms and regulation of payment services, requiring personal credit ratings firms to operate with licenses, reported Reuters.
The central bank will prohibit companies from over-marketing of financial products and luring consumers into excessive borrowing, it added. The central bank also said it would implement prudential management of property finance and improve a policy system of financial support for the rental housing market.