China to Guide Financial Institutions to Increase Support for Rural Vitalization

China’s financial regulatory authorities will take the assessment results as an important reference in implementing monetary policies, and regulating the market and the financial sector. The measures will also guide financial institutions to increase their support for rural vitalization.

In addition, the CBIRC will also continue to guide banks to improve internal mechanisms to serve rural vitalization. Banks are encouraged to give preferential financial policies to rural areas in terms of internal fund transfer pricing, budget arrangement, personnel allocation, and performance evaluation among other services.

The People’s Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) jointly released measures for assessing financial institutions’ services for rural vitalization. The aim is to guide more financial resources to be allocated to key or weak areas in the countryside, and improve rural financial services.

The measures clearly highlight the evaluation targets, methods and procedures, and encouraged support for new agricultural business entities and small farmers.