Friday, January 19, 2007

Now that China eased market entry policies for banking institutions in rural China last month, seven commercial banks have applied to set up a subsidiary in rural areas.

On Dec. 22, 2006, the China Banking Regulatory Commission (CBRC) published proposals to give financial institutions more market access in rural areas. The move was aimed to promote rural development.

The CBRC has received applications from Minsheng Bank, Beijing Rural Commercial Bank, Tianjin Rural Cooperation Bank and four other domestic banks, said CBRC Vice Chairman Tang Shuangning at a conference.

Meanwhile foreign-funded banks such as the Standard Chartered Bank and the HSBC have also expressed interest in setting up branches in rural areas, said Tang.

Village banks will provide financial services to farmers, and be able to invest in and reorganize rural financial institutions.

Domestic institutional investors will be able to take a 20 percent stake in village banks and rural cooperative financial institutions. Individuals can buy up to 10 percent.

Continue reading “Seven banks keen to set up subsidiaries in rural areas

Source: Xinhua (link opens in a new window)