trending Market Intelligence /marketintelligence/en/news-insights/trending/WvxKZEs0W1ychq_c20JlGA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

Chinese regulator tightens lending rules for smaller rural banks

Street Talk Episode 56 - Latest bank MOE shows even the strong need scale to thrive

South State CenterState MOE Shows Even The Strong Need Scale To Thrive

Talking Bank Stocks, Playing The M&A Trade With Longtime Investor

Report: Kashkari Says Fed In Holding Pattern But Rate Cut Still Possible


Chinese regulator tightens lending rules for smaller rural banks

Smaller Chinese lenders in rural areas are no longer allowed to make loans or conduct bill financing outside their home bases, as the regulator tries to improve liquidity for local farmers and small businesses.

The China Banking and Insurance Regulatory Commission said in a Dec. 26 release that it is tightening the operating rules for smaller banks in villages and townships, as some of them have "deviated from their primary purpose of financing growth of the rural communities."

The CBIRC also said those rural lenders must make sure not to lend too much to any single borrower to control asset quality risk, although it did not specify any recommended level.

As of end-September, China had 1,633 rural lenders, of which 65.7% are based in central and western China, according to the release. Outstanding loan per borrower was 335,000 yuan, it added.

As of Dec. 25, US$1 was equivalent to 6.99 Chinese yuan.