PBOC: Large enterprises shifting financing costs to SMEs is not conducive to monetary policy transmission.

On September 14, Cao Yuanyuan, Director of the Financial Market Department of the People's Bank of China, said at a State Council policy briefing that from a financial macro perspective, when large enterprises expand non-interest-bearing liabilities such as accounts payable, small and medium-sized enterprises whose cash flow is squeezed have to borrow from banks, so that SMEs effectively bear the financing costs passed on by large enterprises. This structural mismatch has had an adverse impact on the transmission of monetary policy.