The Agricultural Bank of China Limited (ABC), a state-owned bank with total assets of USD 5.6 billion as of 2009, has reportedly provided microloans of USD 12.2 billion to Chinese farmers within the first three months of 2010. In all of 2009, ABC disbursed USD 9.9 billion in such microloans. ABC makes microloans loans ranging from CNY 3,000 (equivalent to USD 443) to CNY 50,000 (equivalent to USD 7,380). These microloans have reportedly reached 15 million rural Chinese residents, 2 percent of China’s rural population.
According to Lu Chuan, an ABC official, “It is ABC’s responsibility to finance China’s rural development. The bank has a good branch network in the countryside.”
ABC also offers a range of traditional retail and wholesale banking services through its 24,064 branches, sub-branches and outlets in the People’s Republic of China and has correspondent banking relationships with 1,171 banks worldwide. It reported a net profit of CNY 65 billion (equivalent to USD 9.6 billion) in 2009.
By Julia Korn, Research Associate
About The Agricultural Bank of China Limited (ABC):
In January 2009, The Agricultural Bank of China (ABC) registered as a joint-stock company with the government as majority shareholder and was renamed “Agricultural Bank of China Limited.” ABC’s predecessor, the Agricultural Bank of China, was a wholly state-owned commercial bank founded in 1951. In 2009, ABC generated revenue of RMB 38.5 billion (USD 5.6 billion) on its intermediary business, which is an increase of 44 percent from the prior year. ABC’s total loan portfolio grew by RMB 1.03 trillion (USD 151 billion), an increase of 178 percent from the prior year. ABC has 24,064 branches, sub-branches and outlets in the People’s Republic of China and correspondent banking relationships with 1,171 banks worldwide.
Sources and Additional Resources:
[1] Xinhuanet News. “Agricultural Bank of China’s micro-credit loan program in rural areas expands rapidly” on July 18, 2009. http://news.xinhuanet.com/english2010/business/2010-07/18/c_13402858.htm
MicroCapital Universe. Agricultural Bank of China. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agr…
MicroCapital. “MICROCAPITAL BRIEF: Agricultural Bank of China Ltd Announces 2009 Rural Finance and Microfinance Results” by Hio Kyeng Lee on January 27, 2010. https://www.microcapital.org/microcapital-brief-agricultural-bank-of-china-ltd-announces-2009-rural-finance-and-microfinance-results/
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