1. Q: What are the purposes of launching the special central bank lending for inclusive elderly care services?
A: In fast-aging China, the rigid demand for elderly care services is mounting. Aside from policy-supported and market-based elderly care services, it is necessary to develop inclusive elderly care services for the general public. To implement the decisions and arrangements made by the Central Committee of the Communist Party of China (CPC) and the State Council as well as the requirements of the State Council executive meeting held on April 6, 2022, the People’s Bank of China (PBC) and the National Development and Reform Commission (NDRC) decided to pilot the special central bank lending for inclusive elderly care services in some areas. By supporting financial institutions in issuing loans to inclusive elderly care institutions at preferential rates, the facility is expected to lower these institutions’ financing costs, and hence promote more supply of inclusive elderly care services as well as faster improvement of the system for elderly care services.
2. Q: What are the target areas of the special central bank lending for inclusive elderly care services?
A: The facility is aimed at supporting eligible inclusive elderly care institutions. In terms of qualification, they should be incorporated businesses in sound financial and credit situations or government-supported private non-business entities with specific repayment modes. As for the scope of services, these institutions should promise to provide inclusive elderly care services in line with the quality and price standards set by the government for inclusive elderly care institutions, and present such commitment on the official website of Credit China. With regard to the use of funds, loans issued by financial institutions must be used exclusively for inclusive elderly care programs.
3. Q: How will the central bank lending for inclusive elderly care services be implemented?
A: It adopts a “reimbursement” mechanism whereby financial institutions are “reimbursed” on a quarterly basis after they grant preferential loans to eligible inclusive elderly care institutions following a market-based principle at a rate close to the loan prime rate (LPR) of the same maturity. Starting from April 1, 2022, after granting such loans, financial institutions may apply to the PBC for the central bank lending for inclusive elderly care services in the first month of the next quarter, and the PBC will provide central bank lending in full amount of the loan principal.
