Chinanews, Chengdu, Mar. 2 – As a new form of rural financial institutions, the Sichuan Yilong Huimin Village Bank and the Sichuan Yilong Huimin Loan Release Co., Ltd. started operation on March 1.

 

The two financial institutions, the first of their kind to operate at village level, only mark a beginning of the rising of financial institutions in rural areas. In setting up a group of financial institutions in rural areas, China aims to expand the network of financial branches in rural areas to resolve the problem of insufficient money supply there and to make rural financial branches more competitive. In future, China might also consider expanding the financing channels for financial institutions in rural areas, said an official from the China Banking Regulatory Commission.

 

The Sichuan Yilong Huimin Village Bank was set up by Nanchong City Commercial Bank in Sichuan with a registered capital of two million yuan. The Nachong City Commercial Bank has 50% of shares of the Sichuan Yilong Huimin Village Bank, thus becoming the village bank's largest shareholder, while several local companies in Nanchong city have the rest of the shares. The village bank working office is set at a place which was originally a business outlet of a rural credit cooperative. The Sichuan Yilong Huimin Loan Release Co., Ltd., a non-banking financial institution which is only responsible for offering loan release services, is also set up by Nanchong City Commercial Bank.