The China Banking Regulatory Commission (CBRC) announced on
Friday that it would extend its pilot project of rural financial
institutions to all regions, in a move to improve financial
services in rural areas.
Only six provinces were included in the original pilot program
to allow foreign and domestic banking capital to invest in banking
services in rural areas.
So far, 23 rural financial institutions in these areas have been
granted approval to open business, including 11 village banks, four
rural loan organizations and eight rural cooperative fund
associations.
Chinese farmers and rural enterprises currently have few places
to access funds for their businesses. Official figures show Chinese
farmers rarely obtain loans of more than 5,000 yuan.
After the government lowered the working capital limits for
domestic financial institutions to establish branches in rural
areas to three million yuan for banks in counties and one million
yuan in villages and towns in terms of registered capital, a couple
of village banks were established in pilot areas this year.
HSBC got the green light from the CBRC to set up a village bank
in Hubei Province, becoming the first foreign
bank to set foot in the nation's vast rural financial
market.?
(Xinhua News Agency October 13, 2007)
