The People’s Bank of China (PBC), the central bank of the People’s Republic of China, has reported significant growth in the country’s microcredit sector over the past three years, with the number of microcredit companies reaching approximately 7,000 and the total outstanding loans reaching CNY 700 billion (USD 115 billion) at the end of June 2013 in China [1]. In June 2010 the number of microcredit companies was at approximately 1,900 and the total outstanding loans stood at CNY 125 billion (USD 20 billion), a growth of approximately 370 percent and 560 percent over the three year period, respectively. In a statement attributed to Chinese Professor Du Xiaoshan, this growth “signals that microcredit companies are playing an increasingly important role in financing small businesses nationwide.”
As of 2011, PBC’s total reserves were USD 3.2 trillion.
By Meghan Gillis, Research Associate
About the People’s Bank of China
The People’s Bank of China is the central bank of the People’s Republic of China. It is responsible for designing and implementing monetary policy. In 2000, the People’s Bank of China established Rural Credit Cooperatives, which are a significant source of microcredit in China. The People’s Bank of China has also established government-run microfinance institutions in six provinces on a pilot basis. As of 2011, the Bank’s total reserves were USD 3.2 trillion.
Sources and Additional Resources
[1] Global Times: “Nation’s microcredit sector growing fast,” http://www.globaltimes.cn/content/799953.shtml#.Ugu8CzeKIlG
MicroCapital brief, August 1, 2013, “MICROCAPITAL BRIEF: Aeon Financial Service Company Limited Launches Consumer Credit Services Subsidiary Aeon Microfinance (Myanmar) Company,” https://www.microcapital.org/microcapital-brief-aeon-financial-service-company-limited-launches-consumer-credit-services-subsidiary-aeon-microfinance-myanmar-company/
MicroCapital brief, June 26, 2013, “MICROCAPITAL BRIEF: responsibility Loans $9.5m to MicroCred Nanchong of China,” https://www.microcapital.org/microcapital-brief-responsability-loans-9-5m-to-microcred-nanchong-of-china/
MicroCapital Universe Profile: People’s Bank of China (PBC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=People%27s+Bank+of+China
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