China's central bank has urged lenders to step up financing support for consumers in some areas and develop new credit products, in its latest effort to support a slowing economy.
The government has been trying to spur consumption to support growth and reduce the economy's reliance on investment and exports, but there are signs that retailers are shedding staff and slowing expansion plans as shoppers tighten their wallets.
The move to boost credit support for consumers in areas ranging from green cars to tourism comes as authorities in some big cities have sought to cool the housing market by raising mortgage down payment requirement for some buyers.
In guidelines on Wednesday jointly issued by the People's Bank of China (PBOC) and the banking regulator, the authorities said they would "vigorously promote the development of consumer finance, to better meet the need for financing in new consumption areas".
The guidelines, dated March 24, were published on the central bank's website on Wednesday.
Financial institutions will be encouraged to innovate with consumer credit products, allowing consumers to apply for loans
online, as the central bank seeks to expand the size of the consumer credit market, according to the guidelines.
Banks will be allowed to reasonably set lending rates on consumer loans and develop credit products with varied down payment requirements, maturities and repayment methods, according to the guidelines. Among the areas highlighted, car financing firms will be allowed to set their own down payment rate for 'green energy' cars and used vehicles.
The minimum down payment requirement for buyers of new energy vehicles is 15 percent, and for second hand vehicle buyers, it is at 30 percent, according to the rules.
Banks will be allowed to experiment with securitisation with some types of consumer loans that will help enhance their ability to provide new credit, according to the document.