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Business / Policy Watch

China to allow private investors to establish rural commercial banks

(Xinhua) Updated: 2014-02-06 22:43

BEIJING - China will allow private investors to establish rural commercial banks to inject more funds into the countryside and boost rural development, according to the China Banking Regulatory Commission (CBRC).

Private investors have long been shareholders in rural commercial banks, but they have not been allowed to start them.

The CBRC said China is committed to financial innovation in rural areas to better serve agricultural development.

China had a variety of small and medium-sized financial institutions in rural areas by the end of 2013, including 468 rural commercial banks, 1,803 rural credit cooperatives and 1,071 village or town-level banks.

Experts said the move will also boost competition in the financial sector and deepen China's financial reform.

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