An initiative that calls on banking institutions to improve credit access for private enterprises, offer better financial services for private tech firms, and lower private firms' overall financing costs was issued on Monday in Beijing by the China Banking Association, in collaboration with the All-China Federation of Industry and Commerce.

The association said the initiative aims to drive banking and financial institutions to make more concrete endeavors to facilitate the high-quality development of the private economy.

The move came amid China's enhanced efforts to support the high-quality development of the private sector, following a symposium on private enterprises in Beijing last month, which, attended by the country's top leadership, said it is imperative to unify thinking, strengthen confidence, and promote the healthy and high-quality development of the private sector.

"Banking institutions are expected to strengthen support for private micro and small enterprises regarding their first-time loans, loan renewals, and credit-based financing, while reasonably increasing tolerance for non-performing loans in the private sector," it said.

The initiative also suggests that enhancing financing services tools such as intellectual property pledge and receivables pledge is crucial to actively supporting technology-driven private enterprises in research and development, commercialization of innovations, and transformation and upgrades.

Additionally, banking institutions are expected to reduce the overall financing costs for private enterprises by increasing credit supply and streamlining processes to minimize intermediary expenses, the initiative said.

Yin Mingyue contributed to this story.