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China to build 2,000 village banks in 2 years

By Yang Zhen (chinadaily.com.cn)
Updated: 2009-03-06 17:38

China plans to build 2,000 village banks over the next two years to compete with existing rural credit cooperatives, Liu Mingkang, head of China's banking regulator, said on the sidelines of the ongoing National People's Congress on Friday.

Liu said China will encourage private business owners to invest in rural financial institutions, on condition that banks with licenses approved by China's banking regulator remain the majority shareholder. China currently has 97 village banks.

The government would also encourage private business owners to establish bonding companies.