Opinions of PBC and CBRC on Improving the Credit Structure to Boost Economic Growth (PBC Document No. 92 [2009])   With a view to implementing moderately loose monetary policy and promoting sound and relatively rapid economic growth, recently the People´s Bank of China (PBC) and the China Banking Regulatory Commission (CBRC) jointly released ten opinions to further improve the credit structure while ensuring a reasonable growth of money and credit aggregate. In the Opinions, the PBC and the CBRC specify credit policies aimed at facilitating financing for major projects, rural areas, small- and medium-sized enterprises (SMEs), employment programs, students, post-disaster reconstruction, real estate industry, industrial transfer and upgrading, and regional development programs. Measures for strengthening monitoring and assessment of the credit structure and for preventing credit risks are also outlined in the Opinions.   First, loans to investment programs backed by the central government should be granted in a timely manner. Banking financial institutions are encouraged to provide credit support to major central government investment programs through syndicated loans in an effort to spread credit risks. Local governments are encouraged to give incentives to banks for lending to such programs, and governments´ efforts to create a financing platform for the issuance of enterprise bonds, medium-term notes and other financing instruments and to match public investment by broadening private financing channels will be endorsed by the PBC and the CBRC. Financial institutions should explore new ways of funding.   Second, more loans should be extended to the agricultural sector, and more fund flows to the rural areas are encouraged. Financial institutions should increase their loans to agriculture, farmers and rural areas, and step up funding support for Spring farming activities, anti-drought efforts, drinking water programs as well as the efforts to prevent avian flu and other epidemics. The PBC and the CBRC will work to develop new rural financial institutions and rural micro-finance programs, expand the coverage of rural micro-loans, and innovate rural financial products and services. Efforts will be made to improve the rural financing guarantee system and support policy banks to increase medium- and long-term loans to rural infrastructure projects. Financial institutions in areas where conditions are ripe are allowed to study the feasibility of accepting land operating rights as eligible collaterals, and are encouraged to lend with forest ownership as eligible collaterals. More financing instruments, including short-term financing bills, collective bonds of small enterprises, and securities backed by agro-linked credit assets will be issued on the inter-bank bond market in order to give rural financial institutions and enterprises more access to financing. The PBC and the CBRC will also improve their work in providing subsidies for rural residents purchasing household appliances, vehicles and agricultural equipment, and facilitate consumer financing. Financial institutions are encouraged to conduct credit cooperation with rural intermediaries. Depository financial institutions incorporated in counties whose agro-linked loans exceed a certain prescribed level will enjoy preferential policies from the PBC.   Third, provide more funding channels and tailored financial services to SMEs. The establishment of specialized credit services agencies for SMEs and the enterprise credit system should be accelerated. Financial institutions are encouraged to innovate service models for the SMEs, and extend loans to support their M&A attempts. Local governments are encouraged to set up risk compensation funds for loans to the SMEs, and beef up support to credit guarantee agencies. Banks are encouraged to extend more loans to competitive SMEs suffering temporary financial difficulties, and design more specific and tailored financing products and services for them. The pilot scheme of issuing SME short-term financing bills will be adopted on a larger scale, and SMEs will be allowed to issue high-yield bonds and collective bonds on the inter-bank market. Efforts will be made to design credit risk management tools with the SME loans as the underlying assets, and to set up a system to monitor the financing activities of SMEs.   Fourth, strengthen credit policy support for employment programs, students, post-disaster construction and other programs aimed at improving social welfare. The scheme of guaranteed micro-loans should be fully used to help groups facing employment difficulties, including college graduates, physically challenged people and migrant workers returning to their rural homes. Efforts will be made to enhance credit support to small labor-intensive enterprises, and to students with financial stress. Housing programs, infrastructure projects and pillar industries in disaster-stricken areas will be given greater access to credit lines, and the rural credit cooperatives and other financial institutions incorporated in these areas will enjoy greater policy support from the PBC and the CBRC.   Fifth, promote consumer credit. More credit policies will be formulate