To implement the Opinions of the CPC Central Committee and the State Council on Effectively Connecting the Consolidation of Achievements in the Critical Battle against Poverty and the Implementation of Rural Revitalization Strategy and the Opinions of the CPC Central Committee and the State Council on Comprehensively Promoting Rural Revitalization and Accelerating Modernization of Agriculture and Rural Areas, to ensure rural financial support during the 14th Five-Year Plan period, to support the consolidation of achievements in the critical battle against poverty, and to enhance the capacity and effectiveness of financial support for rural revitalization, the People’s Bank of China (PBC), China Banking and Insurance Regulatory Commission (CBIRC), China Securities Regulatory Commission (CSRC), the Ministry of Finance (MOF), the Ministry of Agriculture and Rural Affairs (MARA) and the National Administration for Rural Revitalization (NARR) jointly released the Opinions on Financial Support for Consolidating Achievements in the Critical Battle against Poverty and Comprehensively Promoting Rural Revitalization (hereinafter referred to as the Opinions) recently.
On February 25, General Secretary Xi Jinping declared at the National Summary and Commendation Conference for Poverty Alleviation that China had secured a comprehensive victory in the fight against poverty, and he set forth specific requirements on effectively linking up the consolidation of achievements in the combat against poverty with the implementation of the rural revitalization strategy. Earnestly implementing the decisions and arrangements made by the CPC Central Committee and the State Council, the PBC takes the lead in optimizing policies regarding financial assistance, and effectively connects them with support for rural revitalization through overall planning, with requirements, priorities and key measures clearly outlined, so as to support and guide financial institutions in relevant business activities.
As noted in the Opinions, financial institutions should increase financial input in the following eight key areas, including consolidating achievements in the critical battle against poverty, devoting more financial resources to key counties in the national plan for rural revitalization, enhancing financing support for major agricultural products such as grain, building and improving the financing support system for the seed industry, supporting the buildup of a modern industrial system in rural areas, increasing investment in the green development of agriculture and rural areas, developing effective models in support of the rural construction initiative, and ensuring comprehensive financial services for integrated urban-rural development.
The Opinions integrates and improves the existing financial products for targeted poverty alleviation, rural development, and loan products related to people’s livelihood. Focusing on ten types of financial products, including unsecured micro loans, industrial development loans, loans to new-type agricultural business entities, loans related to people’s livelihood, rural collateral and pledge loans, loans for infrastructure construction for agriculture and rural areas, and insurance products, the Opinions gives full play to the combined strengths of financial sub-markets that range from loans, bonds, equity, futures to insurance, so that the policies are more target-oriented and feasible.
The Opinions explicitly requires banking institutions to improve their service capacity and urges them to set up a comprehensive system of financial organizations in rural areas, improve internal resource allocation and policy arrangements, and enhance fintech empowerment. In addition, the Opinions specifies that basic financial services and the financial ecosystem in rural areas will continue to improve by advancing the credit system, improving the payment service environment, promoting government savings bonds as well as enhancing public awareness of financial knowledge and protection of financial consumer rights in rural areas. Meanwhile, the Opinions enhances incentives and constraints for banking institutions by means of funding support, financial and fiscal rewards and subsidies, risk sharing, appraisal and evaluation, and regulation.
Next, the PBC will strengthen the communication and cooperation with CBIRC, CSRC, MOF, MARA and NARR, and fully review and draw on achievements and experience of targeted financial assistance. It will enhance statistical monitoring, promote data sharing, and work to implement the Opinions for fully consolidating the financial achievements in poverty alleviation and continuously improving the quality and efficiency of financial services in rural revitalization, thus contributing to agriculture quality and efficiency, rural livability and business-friendliness, and rural people’s prosperity and affluence.
