On December 10, the Hubei Office of the National Financial Regulatory Administration and the Hubei Branch of the People's Bank of China jointly issued the *Action Plan for Promoting High-Quality Development of Inclusive Finance in Hubei's Banking and Insurance Sectors* (hereinafter referred to as the *Plan*).
The *Plan* emphasizes that policy banks should increase medium- and long-term credit supply and optimize inclusive finance loan models, while prudently expanding direct lending to SMEs and agriculture-related businesses. Large and medium-sized commercial banks are urged to leverage their resource and technological advantages to significantly improve the quality and efficiency of inclusive financial services. Local financial institutions should capitalize on regional networks to deepen local market penetration, focusing on agriculture and small businesses to build specialized service brands. Non-bank financial institutions are encouraged to enhance professional services and diversify inclusive finance applications. State-owned insurers must lead in expanding inclusive insurance coverage, while health, pension, and agricultural insurers should develop tailored products. Smaller insurers are advised to target niche markets and specific demographics.
**Key Objectives**: By 2030, Hubei aims to establish a high-quality inclusive financial ecosystem, ensuring greater accessibility, suitability, and convenience of financial services for SMEs, individual businesses, farmers, and new agricultural entities. The plan targets steady growth in key-area loans, improved risk management, and stronger policy coordination to support real economic growth and common prosperity.
**Core Measures**: 1. **Organizational Structure**: - Policy banks to prioritize long-term credit; commercial banks to enhance digital solutions. - Local institutions to develop customized services; non-bank players to innovate scenarios. - Insurers to broaden coverage, with state-owned firms leading resource allocation.
2. **Internal Mechanisms**: - Banks and insurers must integrate inclusive finance into strategic planning, with dedicated departments for oversight.
3. **Incentives**: - Large banks to allocate ≥10% of branch performance metrics to inclusive finance, offering ≥50bps FTP discounts for SME loans. - Insurers to include inclusive insurance in KPIs, with state-owned firms weighting it ≥5%.
4. **Risk Control**: - Institutions must balance risk and sustainability, monitoring asset quality and strengthening grassroots service accountability.
**Supply-Side Optimization**: - Establish SME financing coordination mechanisms and "white lists" for specialized firms. - Boost credit to agriculture, rural industries, and county-level economies. - Expand inclusive insurance products, including crop coverage and tailored policies for vulnerable groups.
**Service Enhancements**: - Digital transformation ("Smart Inclusive Finance" initiative) to improve data utility and risk models. - Broaden collateral options, leveraging rural property rights. - Streamline loan processes, enforce fair pricing, and upgrade accessibility for elderly/disabled clients.
**Support Policies**: - Utilize monetary tools (e.g., relending) and tax incentives to reduce financing costs. - Regulatory differentiation by institution type, with quarterly progress reviews. - Cross-department collaboration to align inclusive finance with local economic priorities.
The *Plan* underscores proactive outreach, case studies, and impact assessments to foster synergy between inclusive finance and regional development.
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