Chinese regulators gave their approval to the establishment of six of new rural commercial lenders in the month of November alone, amidst a push for greater reform of the rural finance sector.
On 25 November the Yunnan province banking regulator gave its approval for preparations to establish Yunnan Daguan Rural Village Commercial Bank (云南大关农村商业银行股份有限公司), according to an announcement made by the authority on 2 December.
The following day on 26 November Ningxia province banking regulator gave its approval to preparations for the establishment of two rural lenders: Ningxia Yongning Rural Village Commercial Bank (宁夏永宁农村商业银行股份有限公司) and Ningxia Huinong Rural Village Commercial Bank (宁夏惠农农村商业银行股份有限公司).
Earlier in the same month on 5 November Guangxi province regulators gave their approval to preparations to establish three rural commercial banks – Guangxi Heshan Rural Commercial Bank (广西合山农商行), Guangxi Fengshan Rural Commercial Bank (广西凤山农商行), and Guangxi Zhongshan Rural Commercial Bank (广西钟山农商行).
The period for preparations to establish the new lenders will run for six months from the date of approval, according to regulatory notices.
The Chinese government has been pushing for the reform of Chinese rural credit societies and the expansion of rural financial inclusion for the past two years.
At the start of 2020 the China Banking and Insurance Regulatory Commission (CBIRC) called for “stock-system reform of rural village credit unions and rural village cooperative banks,” while on 27 May 2020 the State Council called for the formulation of “Implementation Opinions for Deepening Reform of Rural Village Credit Societies” (农村信用社深化改革实施意见).
On 21 October of this year Wang Chaodi (王朝弟), CBIRC’s chief investigations officer, said that deepening reform of rural credit societies had been put firmly on the agenda, and that reform was needed of the original systems framework and existing development methods.