MICROCAPITAL BRIEF: China’s Leshan Bank Establishes “Pickle Bank” in Sichuan Province, Disbursing Microfinance Loans to Producer Groups

A branch of Leshan City Commercial Bank in China was established in August 2011 as a “pickle bank,” providing loans to micro- and small pickle enterprises. The pickle bank reportedly has lent a total of RMB 60 million (USD 9.5 million) to 28 such enterprises in the past few months [1].

Previously, pickle producers reportedly had trouble obtaining credit due to lack of collateral; many small enterprises own little outside of pickle jars. To solve this problem, the pickle bank works with the Meishan Food Association to acquire credit information and ensure the borrower meets production standards. In addition, loans are co-signed by other small enterprises. In 2011, Meishan members produced about one million tons of pickles, with total value of RMB 6 billion (USD 952 million) [1]. Leshan City Commercial Bank reports having loaned a total of RMB 500 billion (USD 79.3 billion) since its founding in 1997. Detailed financials for Leshan City Commercial Bank are not available.

By Natalie Baer, Research Associate

About Leshan City Commercial Bank: Leshan City Commercial Bank was established in 1997 with a mission of effecting local economic and social development by serving urban and rural residents as well as small and medium-sized businesses. The bank reports having provided RMB 500 billion (USD 79.3 billion) of credit to the community since its founding. Detailed annual financials are not available.

Sources and Additional Resources:

[1] ‘Pickle bank’ offers loans to MSEs in China http://www.smetimes.in/smetimes/news/global-business/2012/Feb/08/pickle-bank-offers-loans-to-small-pickle-units-in-china626839.html

MicroCapital.org story, January 24, 2012, “MICROCAPITAL BRIEF: Microfinance Institutions in China Report $58b in Outstanding Loans” https://www.microcapital.org/microcapital-brief-microfinance-institutions-in-china-report-58b-in-outstanding-loans/

MicroCapital Universe: Leshan City Commercial Bank,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=%28Leshan+City+Commercial+Bank%29#Description_140_word_limit_

MicroCapital.org story, June 21, 2011, “MICROCAPITAL BRIEF: After Farmers Reject Bank Cards, China’s Harbin Bank “Cash Caravans” Bring Microfinance to Villagers”
https://www.microcapital.org/microcapital-brief-after-farmers-reject-bank-cards-china%E2%80%99s-harbin-bank-%E2%80%9Ccash-caravans%E2%80%9D-bring-microfinance-to-villagers/

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