China's banking regulator has called for diversified funding
channels for the country's underdeveloped rural banking sector.
Tang Shuangning, vice chairman of China Banking Regulatory
Commission (CBRC), said Tuesday that the banking regulator highly
encourages private and overseas capitals to finance rural
investment.
Rural credit cooperatives should continue to act as the main
sources to fund rural banking and to fully support the development
of rural enterprises, he told a national banking regulatory
conference held in Beijing Tuesday.
He said rural banks should expand its business scope to finance
infrastructure development and facilitate loans for farmers.
China's fifth state-owned bank, the China Postal Savings Bank,
which is due to open this year, is expected to focus on rural areas
in credit services, Tang said.
Now that China eased market entry policies for banking
institutions in rural areas at the end of 2006, seven domestic
commercial banks have applied to set up subsidiaries in rural
areas.
The CBRC has received applications from Minsheng Bank, Beijing
Rural Commercial Bank, Tianjin Rural Cooperation Bank and four
other domestic banks.
Meanwhile foreign-funded banks such as the Standard Chartered
and the HSBC have also expressed interest in setting up branches in
rural areas.
(Xinhua News Agency February 7, 2007)