Foreign-funded village banks have been developing fast in China since Suizhou Cengdu HSBC Rural Bank, the first foreign-funded rural bank, was launched in late 2007. Up to now Suizhou Cengdu HSBC Rural Bank has opened 8 sub-branches in central China's Hubei province.
Meanwhile BOC Fullerton Community Bank, a joint venture of Bank of China and Fullerton Finance Holdings, has become the largest foreign rural bank in China with 68 subsidiaries all over the country.
By introducing advanced financial service ideas and running modes, foreign rural banks have made lots of financial innovations such as small unsecured loan products and debit cards. Suizhou Cengdu HSBC Rural Bank has granted the first mortgage loan of land contract right for a cooperative under the promotion of Chinese land reform.
Meanwhile analysts said that with the slowdown of Chinese economy foreign village banks also faced risks such as fracture of capital chain of agricultural firms and illegal local private loans.
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