China’s banking regulator pledged to increase the proportion of lending to private enterprise, which will account for no less than 50% of new corporate loans, Xinhua news agency reported.

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, as well as party boss of the People’s Bank of China, said on Thursday that in the following three years, no less than 50% of banks’ new corporate loans will be given to private enterprises.

Regulators are also considering setting targets for banks. For large-scale banks, the lending to private companies should not be less than 1/3 of their new corporate loans, and that of small and medium-size banks, the proportion should be no less than 2/3, Guo said.

Meanwhile, Guo also promised to broaden the financing channels and reduce the financing costs of private enterprises by fully mobilizing various financial resources such as credit, bond, equity, wealth management plans, trust plans and insurance.

According to incomplete statistics, loans to private enterprises account for 25% of the current banking loan balance, while the private economy has contributed more than 60% to the national economy.