PBOC says low-interest help should be offered to companies affected by the virus
The People's Bank of China (PBOC) has asked domestic lenders to extend short-term loans at discounted rates to sectors and companies affected by the atypical pneumonia outbreak.
But in a development that reflects the increasing decentralisation of China's financial sector and growing independence of individual banks, the central bank's instructions were issued in the form of an opinion rather than a directive - meaning banks can ignore them if they wish.
In the past, the PBOC routinely issued directives that state banks were compelled to follow, regardless of their impact on performance.
'Lending should be directed to the worse-hit sectors or areas affected by Sars,' the PBOC suggested in a seven-point statement.
The plea comes on the heels of the finance ministry's decision to offer tax relief and interest subsidies on loans to the tourism, catering, aviation, transport and entertainment sectors for five months.
