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China plans to build 2,000 village banks

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

China plans to build 2,000 village banks 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 guarantee companies.
 
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