China Outlines Five-Year Action Plan for High-Quality Inclusive Finance Development

On June 26, the National Financial Regulatory Administration and the People’s Bank of China jointly issued the Implementation Plan for the High-Quality Development of Inclusive Finance in the Banking and Insurance Sectors (hereinafter referred to as the “Plan”). The document outlines the objective to establish a high-quality, comprehensive inclusive financial system over the next five years. It also details targeted policies across three key areas: inclusive financial services, inclusive credit, and inclusive insurance.

An official from the National Financial Regulatory Administration emphasized that the Plan focuses on optimizing the inclusive financial service framework, enhancing the structure and capabilities of the inclusive credit system, and strengthening the inclusive insurance system. Regarding inclusive credit, the Plan stipulates the improvement of management mechanisms, elevating the quality and effectiveness of lending services for small and micro enterprises, expanding credit availability in the agriculture and rural sectors, increasing credit support for poverty-stricken regions and specific groups, and reinforcing lending support for private enterprises.

Significantly, the Plan introduces measures to bolster support for private enterprises, reflecting both adherence to successful past practices and the adoption of new policies in response to changes in the national economic and social landscape. According to the Plan, there will be a continued increase in credit resource allocation. This includes enhancing the collection of enterprise credit data, offering specialized credit reporting services, and promoting the “credit-easy loan” model. The focus lies on meeting the financing needs of private enterprises with market viability, sound performance, strong credit, and growth potential. The Plan calls for equal protection of private enterprises’ legal rights in financial dealings—such as fair access, informed consent, independent choice, and data security—while also mandating closer monitoring of loan fund flows to ensure they are used to support private businesses and the real economy.

Ding Zhijie, Director of the Financial Research Institute of the People’s Bank of China, noted that by the end of April, the outstanding balance of inclusive loans to small and micro enterprises had reached RMB 34.3 trillion, marking an 11.9% year-on-year increase and outpacing the overall growth in total lending. He further highlighted the significant level of support provided to specialized and innovative small and medium-sized enterprises.

Beyond inclusive credit, the Plan emphasizes building an integrated system that includes inclusive financial services, credit, and insurance. On the insurance front, the Plan sets out provisions to promote professionalization within insurance firms, expand the supply of inclusive insurance products, enhance service quality, and strengthen regulatory guidance.

The Plan also underscores the need for robust organizational support, including coordination mechanisms, talent development, and digital capabilities. It calls on financial regulators at all levels to strengthen intelligent supervision and improve risk monitoring and resolution capacity in inclusive finance. The Plan encourages financial institutions to use technologies such as cloud computing, big data, and artificial intelligence—within legal and regulatory frameworks—to optimize service models, lower costs, and improve risk management through digital and intelligent solutions.