Rural transactions accounted for only 15 percent of China's total deposits and loans by the end of October, said a senior official with the China Banking Regulatory Commission (CBRC).

Tang Shuangning, vice-chairman with the CBRC, told a forum on harmonious development held Thursday that financial resources in China's vast rural area were seriously inadequate.

The ratio of deposits to loans was 70 percent last year, while the ratio in counties and villages was only 56 percent.

Statistics offered by Tang showed the per capita loan balance in the rural areas was less than 5,000 yuan (633 US dollars) while that in the urban areas exceeded 50,000 yuan.

Tang added that financial resources in central and western China, the comparatively undeveloped region boasting more than half the population, were also seriously inadequate.

Deposits in east China accounted for 60 percent of the national total and loans 57 percent.

In comparison, loans in central China accounted for only 14.9 percent of the country, the western region 16.4 percent, and northeast China 7.7 percent.

Most branches of commercial banks were in East China, the economically prosperous region of the country, while Central, Western and Northeast China regions had inadequate financial services, said Tang.

The CBRC would launch a survey of financial services and bank competition status in the rural area, he said.

A series of policies and measures would follow to encourage both domestic and foreign commercial banks to channel more business to rural and western China, said Tang.

Source: Xinhua