The People’s Bank of China, the Ministry of Finance and top regulators in banking, insurance and securities have co-released a guidance to promote rural development with financial services, according to a statement released on the PBOC website late Monday.
The PBOC said it will moderately relax the requirements for the issuance of special financial bonds for “agriculture, rural areas and farmers.”
And it will be more tolerant of non-performing agricultural bonds. If the non-performing rate of agriculture-related loans is higher than the annual NPL target of no more than 2%, banks will not have points taken off in the evaluation.
The authorities will also try to better meet the diversified financing needs of rural revitalization by creating agricultural and rural collaterals, improve the internal credit management mechanism of banks, apply new technologies and strengthen the innovation of financial products and service methods.