China considers banks for small businesses

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SHANGHAI, Aug 4 (AFP): China is considering establishing state-backed banks focused on lending to small and medium-sized businesses to help boost economic growth, state media reported today.

The proposal aims to help capital-hungry small and medium-sized firms through hard times and allow them to secure long-term financing, Guangzhou Daily reported, citing national development and reform commission officials.

China's growing number of small and medium-sized private businesses have found it difficult to obtain bank loans because of a lack of collateral and credit records.