Rural transactions accounted for only 15 percent of China's
total deposits and loans by the end of October, said a senior
official with the China Banking Regulatory Commission (CBRC).
Tang Shuangning, vice-chairman with the CBRC, told a forum on
harmonious development held Thursday that financial resources in
China's vast rural area were seriously inadequate.
The ratio of deposits to loans was 70 percent last year, while
the ratio in counties and villages was only 56 percent.
Statistics offered by Tang showed the per capita loan balance in
the rural areas was less than 5,000 yuan (US$633) while that in the
urban areas exceeded 50,000 yuan.
Tang added that financial resources in central and western
China, the comparatively undeveloped region boasting more than half
the population, were also seriously inadequate.
Deposits in east China accounted for 60 percent of the national
total and loans 57 percent.
In comparison, loans in central China accounted for only 14.9
percent of the country, the western region 16.4 percent, and
northeast China 7.7 percent.
Most branches of commercial banks were in east China, the
economically prosperous region of the country, while central,
western and northeast China regions had inadequate financial
services, said Tang.
The CBRC would launch a survey of financial services and bank
competition status in the rural area, he said.
A series of policies and measures would follow to encourage both
domestic and foreign commercial banks to channel more business to
rural and western China, said Tang.
(Xinhua News Agency November 25, 2006)