Domestic and foreign-funded banks along with other Chinese firms
and persons are now allowed to establish village banks providing
financial services to rural people and industries, according to the
regulations issued by the China Banking Regulatory Commission
(CBRC).
Village banks are able to handle deposits from the public, give
short, middle, and long-term loans, carry out domestic liquidation
service, engage in bill acceptance and inter-bank credits, issue
bank cards, and underwrite governmental bonds, the regulations
explained.
The regulations also allow domestic commercial banks or rural
cooperative banks to set up credit companies targeted to provide
loans for farmers and the rural economy.
Rural people and enterprises are able to set up small-sized
financial organizations attracting savings from or giving loans to
their members, the regulations said.
The CBRC has received applications from Minsheng Bank, Beijing
Rural Commercial Bank, Tianjin Rural Cooperation Bank and four
other domestic banks to establish rural subsidiaries.
The CBRC, the country's banking watchdog, promulgated The
Proposals on Adjusting and Relaxing Market-entry Policies for the
Banking Institutions in Rural Areas on December 20, 2006.
The move is aimed at improving the financial services, enlarging
the financial network and solving the knotty problems of
insufficient banking services and inadequate competition in rural
areas.
(Xinhua News Agency January 31, 2007)