The Agricultural Bank of China (ABC), one of the "big four"
state-owned commercial banks, said Thursday it plans to injects 467
billion yuan (US$58 billion) in the next five years in support of
the government's initiative to build the "Socialist New
Countryside."
A spokesperson of the bank said Thursday that the "New
Countryside" initiative is providing a big chance for commercial
banks, as it is estimated that the initiative will gobble up some
20 trillion yuan (US$2.5 trillion) by 2020.
The Chinese government launched the "New Countryside" initiative
in 2005, in a bid to promote the development of its vast rural
areas, where 800 million of its 1.3 billion population live.
Though government will increase its spending on agriculture and
rural development, an overwhelming majority of the funds shall have
to be sourced from the banks, the spokesperson said.
As its name implies, ABC has traditionally focused its business
in rural areas and small towns.
Currently the ABC has 6,389 outlets in county towns, and 8,672
outlets in smaller towns.
Compared with other banks, ABC's strength is its extensive
coverage of the rural areas and its familiarity with farmers and
agriculture, the spokesperson said.
While maintaining its shares in traditional services such as
savings and deposits, settlements and small loans, ABC will try to
improve its services to the rising number of agricultural
corporations and leading local firms.
The ABC will also seek to improve its shares in high-end
products such as long-term financing, international payment
settlement, electronic banking, insurance brokerage and credit card
services, the spokesperson said.
(Xinhua News Agency August 4, 2006)