Posts Tagged ‘village bank’

Auditing Banks for Policy Implementation

Posted in Finance Policy on August 21st, 2009 by Yam Ki – Be the first to comment

Do as I say, not as I do!  Just saw an article in Caijing citing a 21st Century Business Herald article about the National Audit Office auditing state banks to check if they have complied with the national stimulus policy and extend credit to infrastructure projects.  As I was reading it, I thought it would be great if they did the same with the microcredit companies, village banks, and other “microfinance” and poverty alleviation related lending. Did the MCCs and VBs really make loans targeted in rural and low income areas as intended by the policy or have they focused on wealthier regions and only for SMEs?  Yes, I am asking a rhetorical question.

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CBRC’s Three Year New Rural Financial Institution Plan May Have Unintended Effects

Posted in Finance Policy on July 31st, 2009 by Yam Ki – Be the first to comment

What does it take to get more banks into poor rural areas? Apparently, by giving out banking licenses in the wealthy regions. That is what the CBRC is proposing in its Three Year Rural Financing Plan. read more »

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Standard Chartered Village Bank Offers Unsecured Loans to Farmers

Posted in Inner Mongolia, MF Marketplace on July 9th, 2009 by Yam Ki – Be the first to comment
Standard Chartered Flyer

Standard Chartered Flyer

The hype around Village Banks is finally delivering something real.  Standard Chartered Village Bank in Inner Mongolia made an announcement yesterday that it will offer unsecured credit to farmers.

Established in August 2007 by the CBRC, Village Banks (VB) were seen as the path to bring credit to China’s rural areas.  Like microcredit companies, VBs can only mobilize deposit and make loans within their county of incorporation.  Three foreign banks have established local branches under read more »

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First Small Loan Company Registered in Xinjiang

Posted in Finance Policy, Xinjiang on June 27th, 2009 by Yam Ki – Be the first to comment

I came across an interesting press release about a set of Small Loan Companies (SLCs) that just got registered in Urumqi, Xinjiang this morning.

The Uyghur Autonomous Region Government issued a pilot test program guideline for SLCs in February 2009. A total of 11 firms applied to register and 5 were provided the license. The largest is Huachun Small Loan Company (华春小额贷款股份有限公司), the focus of the press release.

A few facts of particular interest from the press release that I noticed were: read more »

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Banking on an Exit for Small Loan Companies

Posted in Finance Policy on June 19th, 2009 by Yam Ki – Be the first to comment

CBRC

Today, the China Banking and Regulatory Commission (CBRC) released a directive on converting Small Loan Companies (SLCs / 额贷公司) to Village Banks (VBs / 村镇银行).  It seems that the explosion of SLC and related credit over the past year is making the CBRC a little nervous.  According to the press release for the directive, as of March 2009, there are already 583 SLCs opened and another 573 in preparation.

Institutionalized in May of 2008, the SLCs were People’s Bank of China (PBoC) and CBRC’s attempt to reinvigorate read more »

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