On October 23, the CPC PBC Committee held a meeting on how to intensify the study of the scientific approach to development and, in line with the principles of the Third Plenum of the 17th CPC Central Committee, how to advance the financial work, especially how to develop China s rural finance under the new circumstances. Zhou Xiaochuan, Party Secretary of the CPC PBC Committee and Governor of the PBC, presided over the meeting. Liu Wenjie, deputy head of the 20th inspection team from the CPC Central Committee, along with other members of the team, attended the meeting.
Zhou Xiaochuan pointed out in his speech that, while thoroughly studying and implementing the scientific approach to development within the PBC, the central bank should also make in-depth study on how the financial sector can better support and safeguard the scientific economic and social development in line with the requirements of a comprehensive, coordinated and sustainable development strategy and the building of a harmonious society. Zhou stressed several issues on rural financial development that should be closely studied in applying the CPC s Decision on Some Major Issues Concerning the Advancement of Rural Reform and Development: First, broaden access to the rural financial market and encourage organizational innovation of rural financial institutions. Efforts should be made to draw lessons from historical experiences, press ahead with explorations and pilot programs, and actively promote the building of a rural financial structure tailored to the country s situation and with Chinese characteristics. Second, strike a balance in developing commercial, cooperative and policy financial institutions in the rural areas, with a reasonable function demarcation between them. Third, explore new collateral means and products to address the lack of collaterals in rural finance, and vigorously develop order-based agriculture and agricultural production-based insurance. Fourth, rural financial institutions should properly price their products and services to cover risk and strive to lower their NPL ratio so as to achieve a sound and sustainable development, which is fundamental to providing lasting and premium financial services to agriculture, rural areas and farmers. Fifth, cost advantage should be preserved in developing rural finance. Rural financial institutions should remain cost-effective and small in size to meet the needs of agriculture, rural areas and farmers and to provide long-term and robust financial services for the building of a new socialist countryside.
Participants at the meeting agreed that efforts should be made to thoroughly implement the principles of the 17th CPC National Congress and its Third Plenum, intensively study and apply the scientific approach to development and, with unified purpose and guidelines, extend greater financial support to agriculture, rural areas and farmers, promote the building of a modern rural financial system so as to support the sound and rapid economic and social development in China s rural areas.
