Rural credit bodies to seek foreign funds

    Updated: 2011-11-23 09:55

    By Wang Xiaotian (China Daily)

      Comments() Print Mail Large Medium  Small 分享按鈕 0

    HEZE, Shandong - As China continues the reform of rural credit cooperatives (RCCs), investment opportunities for foreign capital will increase, officials and analysts said.

    Rural credit bodies to seek foreign funds

    A passer-by stops at Shandong Zaozhuang Hengtai Rural Cooperative Bank, a transitional entity between a rural credit cooperative and rural commericial bank.[Photo/China Daily]


    "We expect more RCCs will be transformed into rural commercial banks after equity reform, and foreign investors are welcome to become strategic partners and make long-term investments," said Yin Youxiang, head of the rural financial service regulatory division of the cooperative finance supervision department of the China Banking Regulatory Commission (CBRC).

    RCCs are local institutions that generally provide small loans to farmers, individual business owners and small local companies.

    Calls for further reform of RCCs have increased as the rapid growth of emerging rural financial institutions - such as independent rural banks and lending companies - poses an increasing threat to RCCs' dominance of the rural market.

    "RCCs acted like a catfish and stirred up the previous market structure. We must survive amid rising competition," said Song Wenxuan, deputy director of the China Banking Association and the head of the Shandong RCC Union.

    In towns across Shandong province, where emerging institutions have their largest presence, RCCs only have about 20 percent of the market, compared with 50 to 60 percent in remote villages, said Song.

    The Postal Savings Bank of China Co Ltd, which counts 24,000 rural outlets among its total of 37,000 outlets nationwide, could become a major rival for RCCs as it explores local business opportunities more vigorously, he said.

    "It's time for RCCs to accelerate their development and deepen reform," said Yin Qing-min, head of the Juye RCC Union in Heze, Shandong province.

    According to the Juye RCC Union's Yin, deposits, loans and profits of the credit union have more than doubled from the levels three years earlier.

    "Maybe this is a phase in which RCCs dominate rural markets. But as farmers get richer and richer (and turn to bigger banking institutions), our market share will gradually decline," said Wang Chenxi, head of the Jiangsu RCC Union.

    Zhuang Jian, senior economist at the Asian Development Bank, said there was great growth potential for foreign investors in rural banking and RCCs, but the ceiling of 20 percent on foreign holdings in Chinese commercial banks will limit their enthusiasm.

    Before 1998, due to a high volume of non-performing loans (NPLs), many of the RCCs were technically insolvent. Since 1998, the authorities have injected about $4 billion into the recapitalization of the RCCs.

    Many of these recapitalized institutions gradually became independent rural cooperative banks and rural commercial banks, which later opened to foreign investment and private capital.

    At present, there are 183 rural commercial banks and 214 rural cooperative banks, according to the CBRC.

    The first foreign investment in the sector was allowed in 2006, when Rabobank Group and the International Finance Corp - the private-sector arm of the World Bank - acquired stakes in the United Rural Cooperative Bank of Hangzhou Co Ltd.

    The CBRC's Yin said that regulators have drafted a document encouraging all cooperative banks to transform themselves into rural commercial banks.

    CBRC figures show that as of the end of 2010, the number of RCC outlets across the country stood at 77,000, accounting for 59.7 percent of all banking outlets at or below the county level.

    The total assets of RCCs reached 10.6 trillion yuan ($1.67 trillion) at the end of last year, or 1.7 times more than in 2006. Outstanding loans tripled to 5.7 trillion yuan over the same period, with 68.4 percent related to agriculture.

    The RCCs' NPL ratio declined by more than 30 percentage points to 7.4 percent from the 2006 level. The capital adequacy ratio, which was negative in 2006, stood at 8.7 percent at the end of last year.

    Mao Hongjun, deputy director of the CBRC's cooperative finance supervision department, said: "Low returns, high costs and risks in the rural financial market have kept most RCCs in underdeveloped areas in the red for a long time."

    国产成人AV无码精品| 无码中文av有码中文a| 久久av无码专区亚洲av桃花岛| 日韩乱码人妻无码系列中文字幕| 亚洲动漫精品无码av天堂| 中文字幕av一区| 超清中文乱码字幕在线观看| 久久久久久久人妻无码中文字幕爆| 无码丰满熟妇juliaann与黑人| 亚洲一区二区三区无码中文字幕| 精品无码人妻一区二区三区品 | 一本精品中文字幕在线| 中文字幕无码播放免费| 成人午夜福利免费无码视频| 无码超乳爆乳中文字幕久久| 日韩精品无码一区二区三区四区| 久久婷婷综合中文字幕| 无码AV中文字幕久久专区| 无码人妻少妇久久中文字幕| 91无码人妻精品一区二区三区L| 无码无套少妇毛多18PXXXX| 中文有码vs无码人妻| 最好看的电影2019中文字幕 | 在线天堂资源www在线中文| 2022中文字字幕久亚洲| 中文字幕丰满乱孑伦无码专区 | 一本大道无码日韩精品影视| 国产自无码视频在线观看| 成人无码视频97免费| AV大片在线无码永久免费| 国产热の有码热の无码视频| 人妻少妇偷人精品无码| 国产真人无码作爱视频免费 | 久久男人Av资源网站无码软件| 亚洲av激情无码专区在线播放 | 无码精品视频一区二区三区| 亚洲成av人片在线观看无码不卡| 无码AV中文字幕久久专区| 国产精品va无码一区二区| 国产AV无码专区亚洲AV毛网站| 国产精品无码免费播放|