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Banking Regulator Pushes for Use of Forestry Rights as Loan Collateral

The China Banking Regulatory Commission is pushing for forestry rights to be used as collateral for secured loans as part of efforts to support the development of the forestry sector in certain regions.

On 9 January CBRC issued the “Notice on Relevant Work in Relation to Advancing Forestry Right Collateralised Loans” (关于推进林权抵押贷款有关工作的通知) in conjunction with China’s State Forestry Administration and the Ministry of Land and Resources.

According to the Notice by 2020 those regions that are appropriate for the undertaking of forestry rights collateralised loans will see “basic coverage of forestry right collateralised loan business,” for the purpose of supporting the development of the forestry sector and effectively resolving the issue of the “three agricultures.”

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