Legal analysis: 1. The China Banking Regulatory Commission explicitly requires banking financial institutions to separately formulate annual credit plans for small and micro enterprises, and at the same time moderately increase the bad tolerance of small and micro enterprises. The tolerance for non-performing loans of small and micro enterprises will be moderately liberalized, and banks will make their own decisions. 2. Relax the tolerance of non-performing loans, small and micro enterprises will face favorable financing, but both small and micro enterprises and banks will face new challenges. For small and micro enterprises, the biggest challenge lies in the sustainability of business. The phenomenon of high cost, high risk and low efficiency in small and micro enterprises is quite prominent. Even if the tolerance of non-performing loans of small and micro enterprises is relaxed, how to maintain it smoothly is still a survival problem.

Legal basis: Notice of China Banking Regulatory Commission on Further Implementing the Financial Services Supervision Policy for Small and Micro Enterprises. Improve the tolerance index of non-performing loans and highlight differentiated assessment. It is necessary to actively respond to the current economic growth shift and the rise of non-performing loans in small and micro enterprises, strengthen risk identification and control, make good use of the pre-tax deduction policy for non-performing loans, and increase the disposal and write-off of non-performing loans in small and micro enterprises. On the basis of implementing the existing non-performing loan tolerance policy for small and micro enterprises, banking financial institutions can set differentiated non-performing loan tolerance targets for branches in different regions according to their own risk preferences, risk management level and local economic and financial environment. If the actual NPL ratio of small and micro enterprise loans of the branch does not exceed the target set by the Head Office in the current year, it can be deemed that the employees with non-performing loans of small and micro enterprises of the bank were diligent and conscientious in that year, and their compliance responsibilities were exempted, provided that there were no illegal acts.