A file photo shows a pedestrian walks past the headquarters building of the People's Bank of China in Beijing, capital of China. (Xinhua)

Chinese authorities on Monday held a meeting with 24 major financial institutions to arrange stronger support for the real economy to tackle mounting downward pressure, according to a statement released on Tuesday by the People's Bank of China (PBC), the central bank.

Affected by negative domestic and external factors that have exceeded expectations, downward pressure on the economy has intensified. Financial institutions need to take responsibility to increase support for the real economy and shore up the nation's economic fundamentals, the statement said.

Financial institutions need to fully utilize policy tools to facilitate high-quality economic development with appropriate credit growth. New loans should focus on key regions and specific sectors, such as micro-sized, small and medium-sized enterprises, green development, scientific and technological innovation, energy supply, water conservation and infrastructure.  

The steady growth of real estate loans should also be maintained. Deferred repayments by micro-sized, small and medium-sized enterprises, individual businesses, truck drivers, and personal housing and consumer loans that have been severely affected by the epidemic should be accepted by banks.

In April, new yuan loans in China slowed markedly to 645.4 billion yuan ($95.12 billion), from March's 3.13 trillion yuan, according to the PBC. The central bank on Friday lowered the five-year loan prime rate by 15 basis points to 4.45 percent, its biggest cut in the mortgage-referenced benchmark for longer-term lending.

With both interest rates and reserve requirement ratios being cut, there is more room for financial institutions to increase loans, Dong Dengxin, director of the Finance and Securities Institute of the Wuhan University of Science and Technology, told the Global Times on Tuesday.

Banks and institutions need to appropriately expand loans to support the real economy and ease the economic fallout caused by the Omicron resurgence, Dong said.

While providing stronger loan support for individuals and businesses, financial institutions should adhere to market principles, strike a balance between moderate credit loan growth and guarding against financial risks, and keep financial support for the real economy more sustainable, the central bank said.