Beijing, July 11, 2013 —IFC, a
member of the World Bank Group, and the Research Institute of Finance and
Banking of China’s central bank have signed a cooperation agreement to
jointly research optimal regulatory conditions that help making financing
more readily available in China's underdeveloped rural areas and among
Building an inclusive financial infrastructure
has been a priority for China to expand financial services to its lower
income population. To further develop the sector, the People’s Bank of
China has launched a number of policies designed to make such lending more
efficient and diversified. For instance, the PBOC has encouraged rural
and micro finance institutions to standardize their operations. The PBOC
has lowered the deposit provision and provided more refinancing support
to improve capital liquidity. The PBOC also helped rural and smaller businesses
to piloting funding via the bond markets.
“There is still gap between the vast
financing needs and actual rural and micro lending that is currently available,”
said Pan Gongsheng, Deputy Governor of People’s Bank of China. ”Leveraging
resources from international institutions, we will work with all stakeholders
in China to further boost rural and micro finance.”
Under the agreement, IFC and the Research
Institute of Finance and Banking will study international best practices
and China’s market situation to identify an appropriate operating environment
for rural and microfinance institutions and for innovative payment solution
which can promote financial inclusion.
“Financing needs in East Asia are enormous
with an estimated credit gap of around $1 trillion for micro, small, and
medium enterprises,” said IFC Executive Vice President and CEO Jin-Yong
Cai. “IFC is committed to developing effective and inclusive financial
systems that help address the unmet demand for credit, reduce poverty,
and promote sustainable economic growth.”
IFC has been utilizing its investment
and advisory services to promote rural, micro and mobile financing globally.
As one of the world’s largest microfinance investors, IFC supported around
290 projects in 75 countries by 2012, helping to extend $6.2 billion of
financing to more than 7 million micro and small businesses.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.