Nod of Approval For Black Lending
LIU YUNYUN
【期刊名称】北京周报（英文版） 【年(卷),期】2011(054)051 【总页数】2
Private lending, once obscure and operated underground, gets an unofficial go-ahead from the Central Government
When it comes to underground or black market lending, a major source of fnancing for small and medium-sized business owners, the Chinese Government had taken much the same approach as a legendary hero combating a mythological hydra: decapitating the many heads in an effort to slay the beast. Even now, as the government steps up efforts to tighten credit, the heads of the underground lending realm are sprouting up as fast as they are being cut off, causing China’s leaders to rethink their strategy.
Remarks recently made by a central bank offcial have been regarded as the government’s official recognition of unofficial private lending, according to Xinhua News Agency.
“Private lending is a beneficial and necessary complement to formal financing channels,” the offcial said.
These alternative, and illegal, channels meet certain fnancial needs of various social institutions, especially small and mediumsized enterprises
Nod of Approval for Black Lending
