The People’s Bank of China (PBOC), China’s central banking authority, reportedly has announced a pilot program in the city ofLishuito encourage the establishment of village banks, microcredit firms and rural credit cooperatives to expand financial services for villagers and increase agricultural production. PBOC will expand the types of loan collateral allowed in rural areas and allow agricultural firms to sell shares on the stock market and issue bonds. A similar program was approved for for the city of Wenzhou in March 2012.
By Brendan Millan, Research Associate
About People’s Bank of China (PBOC): Established in 1948, PBOC is the central banking authority of the People’s Republic of China. It is responsible for designing and implementing monetary policy. In 2000, PBOC established Rural Credit Cooperatives, which are a significant source of microcredit inChina. PBOC has also established government-run microfinance institutions in six provinces on a pilot basis.
Sources and Resources:
[1] Reuters: “China Kicks off Rural Financial Reform in Lishui”, http://www.reuters.com/article/2012/05/18/china-finance-reform-idUSL4E8GI2Q520120518
MicroCapital.org story, April 9, 2012, “MICROCAPITAL BRIEF: Chinese Government Establishes 12 Goals to Improve Local Capital Markets, Access to Finance for Private Small and Medium-Sized Enterprises”, https://www.microcapital.org/microcapital-brief-chinese-government-establishes-12-goals-to-improve-local-capital-markets-access-to-finance-for-private-small-and-medium-sized-enterprises/
MicroCapital.org story, April 9, 2012, “MICROCAPITAL BRIEF: Loans to Small- and Medium- Sized Enterprises in China Increasing, but Demand Still Significantly Exceeds Supply”, https://www.microcapital.org/microcapital-brief-loans-to-small-and-medium-sized-enterprises-in-china-increasing-but-demand-still-significantly-exceeds-supply/
MicroCapital.org story, March 6, 2012, “MICROCAPITAL BRIEF: China Association of Microfinance (CAM), China International Center for Economic and Technical Exchanges, Peking University, CreditEase Microcredit Investment Launch Inclusive Finance Wholesale Fund”, https://www.microcapital.org/microcapital-brief-china-association-of-microfinance-cam-china-international-center-for-economic-and-technical-exchanges-peking-university-creditease-microcredit-investment-launch-inclusive-fina/
MicroCapital Universe Profile: People’s Bank of China (PBOC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=People%27s+Bank+of+China
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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