As related, ICBC Beijing Branch, the biggest commercial bank in the capital, registered RMB 12 billion of small business loan outstanding by end of June 2011. The lending growth rate was 34%, higher than average growth rate of all other loans.

For a long time, Beijing Branch has taken a long-term development strategy to support growth of small enterprises, said an executive with the Branch. In 2008, the Branch set up Beijing's first small business financial center in Zhongguancun, the first among the banks in Beijing to adopt a professional approach in the delivery of financial services to small enterprises. The financial center offers "specialized, exclusive, professional", integrated and one-stop financial services for small enterprises in the area. At present, 10 such centers have been established in succession in Zhongguancun, Shunyi, Beijing Economic-Technological Development Area (BDA) and other areas where small enterprises are gathered. Small business loan outstanding of the 10 centers have reached RMB 7 billion as of end of June, 2011.

In order to address the "short-term, small, frequent, urgent" loans needed by small enterprises, Beijing Branch sets up the highly efficient "2+1+2" "vertical" approval scheme, an independent process for the approval of loans to small enterprises distinct from loans to large enterprises. Another objective is to assign dedicated staff to approve small business loans. Application procedures are simplified to the largest extent for faster and better approval and at the same time combining risk management and business authorization. A professional team has formed in line with "vertical" approval. Members of the team are authorized to sign small business loans together with authorized staff in the sub-branches which are within the approval limit of sub-branches. The team members pay regular visits to sub-branches to understand the business requirements in the first instance and approve loans at the sub-branches, moving the approval process forward, shortening the time needed while ensuring risk control.

Beijing Branch draws up a floating pricing mechanism on loans to small enterprises. Loan prices are set on the basis of reference interest rate, taking guarantee option, repayment option, industry policies, time needed for approval and earnings into consideration, and according to different floating ratios. If the reference interest rate is lower than the benchmark rate of the same term, different floating ratios will be applied for small business loans based on the benchmark rate. The interest risk mechanism brings benefits to small and medium enterprises to the largest extent.

Small enterprises belong to many sectors. Thus, in term of manpower, a team of high-level and professional staff is needed to ensure the business to grow on a large scale. Eight certification exams have been organized by the Branch for staff engaging in lending to small enterprises since 2006. At present, a highly efficient team is set up in the Branch having 100 staff dedicated to the business and more than 700 staff obtaining the certifications.

As related, Beijing Branch plans to offer loans of RMB 7 billion to small enterprises despite credit squeeze this year.