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Micro-finance companies' bank financing ratio won't rise

(chinadaily.com.cn)
Updated: 2009-06-18 15:32

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The 50-percent limit on micro-finance companies' bank financing ratio won't be eased in the short run, according to Zang Jingfan, head of the cooperative finance supervision department of the China Banking Regulatory Commission.

"It is not good timing to increase micro-finance companies' current ratio since they may pass their risks over to banks," Zang said in an interview with 21st Century Business Herald. His comments came amid recent calls for raising the ratio.

Micro-finance companies have two ways to raise funds, the first is ...

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