PBOC Is Trying to Fix China’s Decades-Old Credit Conundrum

China’s central bank is trying to fix one of the domestic economy’s most intractable problems: Poor access to credit by small companies, Bloomberg News reported. Having resisted the kind of large-scale stimulus rolled out by its global peers, the People’s Bank of China instead has been tapping away at small-scale programs designed to improve the ability of small firms to survive the slump. On Monday it announced its latest plan, using 400 billion yuan ($56 billion) to turn unsecured loans to businesses into one-year cash for banks. While a large infusion of money or bond-buying would cheer markets who’ve been disappointed by the modesty of Governor Yi Gang’s stimulus effort to date, it would likely only end up in the coffers of big state-owned banks or government-run companies. Read more