The China Banking Regulatory Commission (CBRC) has publicized
policies and regulations to facilitate banks' entry in the
countryside.
According to the regulations, domestic and foreign funded banks
as well as other Chinese firms and persons are allowed to establish
village banks to provide financial services for rural people and
industry.
Village banks can attract deposits from the public, give loans
of short, middle and long term, conduct domestic liquidation
service, engage in bill acceptance and inter-bank credits, issue
bank cards, and underwriting governmental bonds, the regulations
said.
The regulations allow domestic commercial banks or rural
cooperative banks to set up credit companies that specially provide
loans for farmers and rural economy.
Rural people and enterprises are allowed to set up small-sized
financial organizations that attract savings from or give 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 Dec. 20, 2006.
The move is to improve the financial services, enlarge the
financial network and solve the problems of insufficient banking
service and incomplete competition in rural areas.
(Xinhua News Agency January 31, 2007)