Читать книгу Rural Finance in Poverty-Stricken Areas in the People's Republic of China - Xuechun Zhang - Страница 40

Rural financial reform since 1996 has failed to promote competition in the rural credit market. Instead, the reform caused the ABC to gradually remove its lending business from the rural credit market and close down rural cooperative foundations and other informal financial institutions. In addition, the ADBC has decreased its lending for acquisition of crops, cotton, and edible oil. As a result, RCCs have been forced to play the role of primary credit providers in rural financial markets, giving them a virtual monopoly in the rural credit market and creating the low efficiency that usually accompanies a monopoly. However, a mismatch between RCCs’ capacity and their mandate soon emerged. Due to the historical burden of a large volume of accumulated nonperforming loans, the administered interest rate, and inefficient management in some areas, RCCs still suffer huge losses, despite their monopoly status. The losses are especially heavy for RCCs in the central and western regions of the PRC, and such losses make RCCs unsustainable as the only service provider in the rural financial market.