Core Viewpoint - The Guangzhou Local Financial Management Bureau has introduced a new credit risk compensation mechanism to enhance financial support for small and micro enterprises, addressing issues of fragmented policies and improving efficiency [1][6]. Summary by Sections Credit Risk Compensation Mechanism - The mechanism allocates a maximum annual compensation of 1.5 billion yuan, aimed at encouraging banks to increase credit financing for small and micro enterprises [2][4]. - It features two models: the "government-bank" model compensates banks for actual losses on non-performing loans, while the "government-guarantee" model compensates guarantee institutions for overdue loans [2][4]. Eligibility and Compensation Standards - Eligible borrowers under the "government-bank" model include small and micro enterprises registered in Guangzhou, with specific criteria for high-tech enterprises [4][6]. - Compensation rates vary based on loan amounts: 40% for loans up to 5 million yuan, 30% for loans between 5-15 million yuan, and 20% for loans between 15-30 million yuan. Additional percentages apply for certain qualifying enterprises [4][5]. Risk Control Measures - The mechanism includes safeguards to control risks, such as pausing compensation if a bank's non-performing loan losses exceed 3% of its total loan amount for the year [5][6]. Innovations and Objectives - The new mechanism aims to unify fragmented policies, establish a dual-mode risk-sharing system, and provide targeted support for key sectors, including technology and green industries [6][7]. - It seeks to enhance the coverage of financial resources to underrepresented areas, thereby stimulating the engagement of guarantee institutions in supporting small and micro enterprises [7].