China urges banks to speed up agriculture sector loans
Updated: 2015-03-04 09:45
(Agencies)
|
|||||||||||
China urged its banks to speed up lending to agriculture, the country's banking regulator said on Tuesday, in an effort to bolster a sector that employs almost one third of its 1.4 billion people, but remains in desperate need of funding.
Policymakers have cut interest rates, increased lending targets and freed up banks' reserves to lend more, but this has done little for farming, which produces some 9 percent of China's GDP, though with low productivity.
Current farming techniques have been blamed for causing major soil and water pollution and food scandals, and economists say the sector needs investment from banks that have so far been reluctant to lend, despite repeated demands from Beijing.
Banks should "persist in improving rural finance services and forcefully support agriculture modernisation," a statement posted on the website of the China Banking Regulatory Commission (CBRC) said.
Financial institutions should also "strive to achieve rural lending speeds that exceed the average level of all loans," the regulator said, adding that water conservation and rural road construction would be a priority.
China's "number one" planning document, issued by state media in February, listed modernising farms as a key priority for 2015, including plans to encourage private investment and cheaper financing.
China has been struggling to squeeze as much food out of its declining land area as possible as demand increases from ever-expanding urban regions.
Related Stories
China eyes sustainable, strong agriculture 2015-02-04 10:46
Sow today, reap tomorrow - the future of China's agriculture 2015-02-03 16:57
China to speed up agri modernization through reforms 2015-02-02 09:59
China boosts financial support to small firms, agriculture 2015-01-16 14:01
China vows to boost grain yield, farmers' income 2014-12-24 16:40
China to advance agricultural modernization 2014-12-24 07:15
Today's Top News
Prince William welcomes more Chinese in EPL
Ukraine fighting kills 6,000: UN
Air pollution tops public concerns
Separatist sections lack any legitimacy in Hong Kong
Xi gets invitation during meeting Prince William
Treasures stolen from Fontainebleau palace's Chinese museum
Thousands march in Russia to mourn opposition leader Nemtsov
Prince William starts China tour with visit to museum in Beijing
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Annual legislative and political advisory sessions |
Festival Special: Apps that make holiday shopping easier |
Listed firms caught in anti-corruption net |
Conca set to return to China |
CES: Spotlight on Chinese gadgets |
Yearender: What happened around the globe in 2014 |