According to an inside source, the latest drafted plan for the
Agricultural Bank of China's (ABC) stock rights reform suggests
that the bank eliminate 14,500 branches to facilitate a government
bailout. But ABC has not verified the plan. Financial experts also
noted that this plan would not be easy to be put into practice.
It is said that the 14,500 branches mentioned in the plan are
mainly located in rural areas, accounting for more than half of the
bank's 24,937 branches.
If the plan were carried out, ABC would cut 11 billion yuan in
annual costs and need less financial help from the government. Then
the bank could concentrate its operation on China's advanced
regions and hub cities. But the State Council expects the ABC to
focus on offering services to rural areas. So it is very hard to
say if this kind of plan can be implemented.?
For more details, please read the full story in Chinese. (
http://www.dfdaily.com/node2/node27/node121/userobject1ai32624.shtml)
(China.org.cn October 12, 2007)
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