China lays down guidelines for rural financing

BEIJING: The Communist Party of China (CPC) Central Committee Sunday laid down guidelines for establishing a modern rural financial system with emphasis on larger credit tailored to rural needs.

It said the country should promote innovation in rural financial system and lower the threshold for establishing rural financial institutions.

The committee also urged the establishment of a sound and safe rural financial system with the integration of commercial, cooperative and policy-based finance.

Financing channels should be widened to steer more credit and social investment funds for rural development, according to the document.

It also called for agricultural development banks to expand their agriculture-supporting business and offer more policy-based financial assistance to long-term loans for agricultural development and ongoing infrastructure construction in rural areas.

China Banking Regulatory Commission (CBRC), the industry watchdog, said late last week the country would have more than 100 rural financial institutions operational by year end.