Bank of Beijing announced on Sunday to extend 4- to 6-billion-yuan credit line to small enterprises. The additional line of credit accounts for 20 to 30 per cent of the bank's annual credit growth.

A responsible official with the bank said the extension is aimed at adjusting the bank's credit pattern focusing on medium- and long-term loans. Compared with medium- and long-term loans, short-term loans for small enterprises can help strengthen the bank's financial liquidity and avoid credit risks. On the basis of measuring credit, market and operational risks, the bank will make risk assessment of small enterprises' loans taking into consideration of differences among trades, ways of guaranty and borrowers, and offer corresponding differential line of credit, time limit, interest rate and ways of reinsurance accordingly.

By People's Daily Online