BEIJING — China's banking and taxation authorities will further deepen their collaboration and provide more concerted support for the country's private and small firms.

To better alleviate the enterprises' financing difficulties, efforts will be made to help them turn taxation credit into financing credit, said a notice jointly issued the China Banking and Insurance Regulatory Commission and the State Taxation Administration.

A direct link between taxation and banking data should be promoted while banks should be encouraged to upgrade their credit products, said the notice.

In the meantime, local taxation and banking regulators must ensure data security and confidentiality to protect the business secrets of enterprises.

The two departments launched the interactive mechanism in 2015 in a bid to solve the information asymmetry during the fundraising activities of small companies.

From 2015 to the end of September, China's banking institutions had issued about 1.57 trillion yuan (about $224.5 billion) of loans to small and micro firms with good credit nationwide, and the figure stood at 393.9 billion yuan in the first three quarters of this year, up 18.6 percent year-on-year.