business

China issues guideline to help rural banks tackle risks

BEIJING, Jan. 5 (Xinhua) — China’s top banking regulator has released a guideline to support rural banks in handling risks and push forward reform and restructuring.

Issued by the China Banking and Insurance Regulatory Commission, the guideline urges major initiating banks to replenish capital for rural banks and help them manage non-performing loans.

While calling for efforts to advance the reform and restructuring of rural banks, the guideline also encouraged qualified strategic investors to offer help in purchases and capital increases.

To mitigate the mounting risks for some rural banks, the commission has urged local regulators to tailor risk management measures and stress initiating banks’ responsibilities.

The commission has also pledged to guide financial institutions and non-financial firms to participate in the reform and restructuring of rural banks.

China had established 1,641 rural banks covering 71.2 percent of all county-level regions by the end of last September, official data showed.

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