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."

    无码人妻品一区二区三区精99| 亚洲精品无码久久久| 国产精品无码永久免费888| 欧美中文字幕无线码视频| 最近免费中文字幕大全免费| 久久久久亚洲AV无码麻豆| 欧美日韩国产中文精品字幕自在自线| 久久精品无码专区免费青青 | 精品亚洲AV无码一区二区三区 | 国产在线观看无码免费视频| 日韩精品无码免费专区网站 | 最近中文字幕完整版资源 | 精品人妻V?出轨中文字幕| 亚洲人成国产精品无码| AV无码精品一区二区三区| av无码人妻一区二区三区牛牛| 久久精品aⅴ无码中文字字幕重口 久久精品天天中文字幕人妻 | 一本无码中文字幕在线观| 日韩免费在线中文字幕| 久久精品中文字幕大胸| 国产在线观看无码免费视频 | 成在线人免费无码高潮喷水| 国产成人无码av| 炫硕日本一区二区三区综合区在线中文字幕| 中文无码喷潮在线播放| 国产强伦姧在线观看无码| 日韩精品人妻系列无码专区| 日韩精品无码一区二区中文字幕 | 国产成人无码18禁午夜福利p| 亚洲精品无码成人片久久| 精品国产V无码大片在线看| 免费一区二区无码东京热| 无码夫の前で人妻を侵犯| 97无码人妻福利免费公开在线视频 | 亚洲人成网亚洲欧洲无码久久| 久久亚洲日韩看片无码| 日韩精品无码一区二区视频| 中文字幕有码无码AV| 亚洲AV无码一区二区二三区入口| 亚洲av永久无码精品表情包| 无码人妻少妇色欲AV一区二区|