The China Banking Regulatory Commission (CBRC) on June 7 announced measures to provide better access to financing for small firms. The measures aim to support commercial banks to enable credit growth for small businesses to match their average lending growth, the CBRC said.

A loan of less than 5 million yuan ($770,000) to a small company will be viewed as retail lending, which brings smaller interest-rate risks compared with wholesale loans. Furthermore, a loan of less than 5 million yuan to a small company will not be subject to loan-to-deposit ratio supervision.

The CBRC supporting measures come at a time when a number of small firms have reportedly shut down in recent weeks because of difficulties acquiring loans amid monetary tightening policies.