The People's Bank of China (PBoC) has issued a guideline that will establish the process of creating a credit system to help small to micro-sized businesses and farming households gain access to needed capital.

The guideline is the first formal step that opens doors for additional capital for small enterprises and farmers who have good credit standing, enabling them to secure loans and expand their operations. The PBoC said in a statement that the credit system is expected to promote a healthy growth.

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As early as 2006, the central bank started the first processes of opening a credit system. By 2013, the PBoC collected data on credit status for nearly 2.4 million small and micro enterprises and 151 million farming households.

A total of 31 cities and 32 municipalities were selected as pilot zones for the credit system. The county of Gaoling in Shaanxi province will serve as the first area to initiate the credit system.

The credit system will be integrated into the programs seeking to improve and modernize the financial services for small businesses and farming enterprise.

Commercial banks and various financial institutions are being encouraged to develop creative innovations to serve this new market.

The State Council implemented a guideline that will establish a social credit system that is envisioned to maintain order in China's rapidly expanding market economy.