THE country’s banking watchdog Thursday urged banks to extend credit to grain producers and other agriculture-related enterprises, in a bid to spur production as grain supply pressure keeps mounting in China.
Banks across the country should provide more funds to support grain production and non-agricultural loans should be controlled, said Jiang Dingzhi, vice chairman of the China Banking Regulatory Commission (CBRC).
The growth rate of agriculture-related loans this year should not be slower than that of last year, he said during a teleconference meeting Thursday, stressing that the voluntary closure of county branches and outlets of large commercial banks are not allowed.
The unprecedented snowstorms and severe drought that hit northern China this spring, during the ploughing season, would make it harder to ensure grain supplies this year, said Chen Xiwen, director of the office of the central leading group on rural work.
An international grain supply shortage and rising prices of commodities are also adding pressure on China’s grain production.
The country’s grain output exceeded 500 million tons last year but was still 15 million tons less than the total demand, official figures show.
Jiang urged rural cooperatives, commercial and policy banks to follow credit ethics and perform their social responsibilities to support rural development.
CBRC chairman Liu Ming-kang said the guaranteed mortgage system should be revamped to allow easier loans for farmers. Fiscal incentives should also be designed to encourage rural lending.
The central bank said earlier that the country would continue with its tight monetary policy, which would be adjusted in response to changes in the domestic and world economies.
The bank reiterated that credit preference would be given to relatively weak sectors including agriculture, employment, education and small and medium-sized enterprises.(SD-Agencies)
THE country’s banking watchdog Thursday urged banks to extend credit to grain producers and other agriculture-related enterprises, in a bid to spur production as grain supply pressure keeps mounting in China.
Banks across the country should provide more funds to support grain production and non-agricultural loans should be controlled, said Jiang Dingzhi, vice chairman of the China Banking Regulatory Commission (CBRC).
The growth rate of agriculture-related loans this year should not be slower than that of last year, he said during a teleconference meeting Thursday, stressing that the voluntary closure of county branches and outlets of large commercial banks are not allowed.
The unprecedented snowstorms and severe drought that hit northern China this spring, during the ploughing season, would make it harder to ensure grain supplies this year, said Chen Xiwen, director of the office of the central leading group on rural work.
An international grain supply shortage and rising prices of commodities are also adding pressure on China’s grain production.
The country’s grain output exceeded 500 million tons last year but was still 15 million tons less than the total demand, official figures show.
Jiang urged rural cooperatives, commercial and policy banks to follow credit ethics and perform their social responsibilities to support rural development.
CBRC chairman Liu Ming-kang said the guaranteed mortgage system should be revamped to allow easier loans for farmers. Fiscal incentives should also be designed to encourage rural lending.
The central bank said earlier that the country would continue with its tight monetary policy, which would be adjusted in response to changes in the domestic and world economies.
The bank reiterated that credit preference would be given to relatively weak sectors including agriculture, employment, education and small and medium-sized enterprises.(SD-Agencies)
