Government and Policy

China's banks urged to back grain production

(Xinhua)
Updated: 2011-02-18 19:12

BEIJING - China's banking regulator has asked banks to guarantee credit support for grain production and water projects this year, it said in a statement on its website Friday.

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Lenders should ensure growth of credit to the agricultural sector of at least the average rate of loans to other sectors this year to boost grain production and increase rural incomes, the China Banking Regulatory Commission (CBRC) said.

It said banks should expand loans for water conservancy projects and water treatment facilities while ensuring credit security.

The CBRC asked banks to increase funding for drought relief and spring planting.

Banks should support enterprises and rural households affected by drought by giving them "timely and effective" capital to resume production, the statement said.

The CBRC would strengthen supervision of such loans and curb demand for loans for speculation and hoarding of agricultural products.