The People's Bank of China issued a notice establishing a “service consumption and elderly care” relending facility to incentivise financial institutions to increase credit support for key service-consumption sectors including accommodation and catering, culture, sports and entertainment, and education, as well as the elderly care industry. The facility has a quota of CNY 500 billion, an annual interest rate of 1.5% and a tenor of one year, extendable twice, with a maximum use period of no more than three years, and is set to run through end-2027. Access is limited to 26 institutions, including China Development Bank, policy banks, state-owned commercial banks, the Postal Savings Bank of China and joint-stock commercial banks, plus five systemically important city commercial banks (Bank of Beijing, Bank of Shanghai, Bank of Jiangsu, Bank of Nanjing and Bank of Ningbo). Participating institutions will make their own lending decisions and set loan terms on a risk-bearing basis; for loans that fall within the supported areas, they can apply quarterly to the central bank for relending equal to 100% of the loan principal and must ensure the authenticity of the reported loan information. The People's Bank of China will provide relending in line with relevant policy rules and will strengthen ex post verification and supervisory oversight.
Central Bank of the Republic of China 2025-05-09
People's Bank of China sets up CNY 500 billion 1.5% relending facility for service consumption and elderly care
The People's Bank of China has introduced a "service consumption and elderly care" relending facility with a CNY 500 billion quota, 1.5% annual interest rate, and a maximum three-year use period, running through 2027. Access is limited to 26 financial institutions, including major banks, which will set loan terms and apply for relending equal to 100% of the loan principal for eligible sectors. The central bank will ensure compliance through ex post verification and supervisory oversight.