Provisional Rules Governing Village or Township Banks


(enacted in 2007)

Microfinance is also provided by Village or Township Banks, which are established to provide financial services  to local farmers, agricultural production and rural economy. According to purpose of establishment, they provide microfinance in the forms of making loans small and uncentralized limited to the 5% of banks net capital to single individuals and 10% limit to single enterprises. After  full amount of deposit reserves, a village or township bank can utilize all funds available to support county economic development. When making loans, priority should be given to rural households within the county region to meet the needs of agricultural production and rural economic development. By regulations, Village or Township Banks face more rural financial needs and established primarily to provide microfinance service in rural areas.

The chapters are as follows:

Chapter I General Provisions

Chapter II Establishment

Chapter III Ownership arrangement and qualification of shareholders

Chapter IV Corporate Governance

Chapter V Operation and Management

Chapter VI Supervision and Inspection

Chapter VII Alteration and Termination

Chapter VIII Supplementary Provisions