The Ministry of Finance, in collaboration with the People's Bank of China and the State Administration of Financial Supervision, has recently introduced a new policy on consumer loan interest subsidies with the release of the 'Implementation Plan for the Fiscal Interest Subsidy Policy for Personal Consumer Loans.' This policy specifies that 23 financial institutions will be designated as 'targeted' handling agencies for these subsidies, offering an annual interest subsidy rate of 1 percentage point. This list encompasses six state-owned banks, 12 national joint-stock banks, and five consumer finance institutions.

For these selected handling agencies, the fiscal interest subsidies promise to bolster their consumer loan business, opening up avenues for expansion. However, this also brings with it heightened compliance costs and stricter funding supervision. Meanwhile, financial institutions that have not been included in the initial list are eagerly anticipating the opportunity to benefit from these policy dividends. At a recent press conference held by the State Council Information Office, it was hinted that the scope of the interest subsidy policy may be further expanded in the future.