Rural Bank Lending in China Rises 16.5% Per Annum on Average Since 2007
A new report from the People’s Bank of China (PBOC) points to over 500% growth in rural-related bank loans since the launch of the metric in 2007.
The “China Rural Village Financial Services Report (2018)” (中国农村金融服务报告) indicates that the rural-related bank loan balance of all financial institutions has seen a cumulative increase of 534.4% since 2007, for a an average per annum rise of 16.5% over an 11 year period.
The rural-related bank loan balance has risen from 32.7 trillion yuan at the end of 2018 from 6.1 trillion yuan at the end of 2007, while its share of all lending increase to 24% from 22% previously.
During the period from 2007 to 2018 China’s rural insurance premium revenues increased from 5.18 billion yuan to 57.27 billion yuan for a 10.1 fold increase, while the number of rural households that had taken out insurance policies increased from 49.81 million to 195 million.