Citi opens third rural lending company in China

Citi China has opened its third lending company, near the northeastern port of Dalian in a town designated by the government as a pilot location for rural banking reform.

Citi China has opened its third lending company, near the northeastern port of Dalian in a town designated by the government as a pilot location for rural banking reform.

HT Image

Citi said on Wednesday that it expected the company, Dalian Wafangdian Citi Lending Co Ltd, to see significant credit demand from individuals and micro-businesses underserved by China's big banks. The company has registered capital of 17 million yuan ($2.49 million).

More than 100 rural financial institutions have been established across China since 2006 as part of a drive by the government to increase access to financial services and thus help reduce a yawning income gap between cities and the countryside.

The Asian Development Bank last week approved a technical assistance grant of $500,000 so that the People's Bank of China can improve the statistics it gathers about rural financial needs.