Six banks in Sichuan province, including the Bank of China and the Industrial and Commercial Bank of China, have granted a total 420 billion yuan (US$60.53 billion) in credits to the Sichuan Provincial Association of Industry and Commerce, Xinhua news agency reported.

Liu Shaoxin, vice-governor of the central bank’s Chengdu branch, wants banks in Sichuan to take more active and effective measures to boost financial services to private and small enterprises.

They are to make full use of the liquidity released by reserve requirement ratio cuts and funds from refinancing and rediscount.  The strategy is meant to lower the cost of financing for private and small companies.

According to the big data system of the Chengdu Branch of the People’s Bank of China, since 2018, banks in Sichuan have granted credits of 1.08 trillion yuan to private enterprises, and issued 36,000 in loans worth 266.3 billion yuan. The weighted average interest rate is 5.61%.

In 2017, the private economy of Sichuan Province realized an added value of more than 2 trillion yuan, accounting for 56.1% of its GDP.