Shanghai Banks Lend More PBOC Money to Help Local Firms Fight Covid-19
Xu Wei
DATE:  Feb 26 2020
/ SOURCE:  yicai
Shanghai Banks Lend More PBOC Money to Help Local Firms Fight Covid-19 Shanghai Banks Lend More PBOC Money to Help Local Firms Fight Covid-19

(Yicai Global) Feb. 26 -- Banks in charge of a special relending policy in Shanghai loaned out another CNY653 million (USD92.8 million) of central bank money to local firms last week in a bid to help fight the Covid-19 outbreak.

The banks had lent a total CNY1.7 million to 55 companies, most of which produce and stock medical supplies, as of Feb. 23, the Shanghai head office of the People's Bank of China said yesterday, with 40 loans being issued last week.

The money for the loans comes from central bank lending issued to financial institutions to meet monetary policy objectives, though the relending policy allows banks to pass these funds on to help control the Covid-19 epidemic. The weighted average interest rate of the loans is 2.31 percent so far.

Shanghai confirmed its first new case of the coronavirus yesterday after two straight days with no new patients.

The central bank's Shanghai office will continue to guide financial institutions to improve efficiency of credit reviews and ensure key companies involved in battling the epidemic can maintain production and operations.

More than 36.5 percent of the loans issued so far, about CNY618 million, have gone to medical supplies makers, with those that hold medical supplies receiving about 25.8 percent. Key equipment makers and supporting firms have borrowed 14.5 percent, those selling and transporting materials 13.9 percent, and those producing other essentials 9.3 percent.

Twelve of the loans, each for at least CNY50 million, are for making X-ray machines and computed tomography scanners, and buying protective equipment like masks, hazmat suits and medical goggles.

Editor: James Boynton

Follow Yicai Global on
Keywords:   PBOC Shanghai Head Office,NCP