Number of village banks in China hits 1,000

Vital conduit for loans to small and medium enterprises.

The China Banking Regulatory Commission reported that the number of China's village banks reached 1,000 this week. It said these small banks are responsible for boosting local economies with loans and financial support.

There has been steady growth in the number of village banks. Over half of China’s 1,880 counties have village banks.

As of late August, village banks lent US$20 billion to farmers and US$26 billion to small businesses, accounting for 89% of the total loans.

They also had US$85 billion in assets. Private funds hold 70% of the shares in these banks.

The rate of non-performing loans at village banks stands at 0.45% and provision coverage at 480% at the end of August.

CBRC encourages village banks to extend loans to borrowers in China’s mid and western regions; remote and poverty-stricken areas and SMEs.