The Postal Savings Bank of China (PSBC), a commercial bank in China aiming to serve low-income entrepreneurs, has reportedly increased its impact in rural areas through the provision of microloans funded by the Chinese government. The Economic Observer, a weekly Chinese newspaper, focused on the rural town of Zhao Hongpo and its increased annual production from CNY 500,000 (USD 75,000) in 2008 to CNY 3 million (USD 452,000) in 2010. This has lead to an average annual income of CNY 100,000 (USD 15,000) in the region as opposed to an average of CNY 21,200 (USD 3212) nationwide as of 2008 [1].
The interest rate on all microloans from PSBC is fixed at 13.5 percent, and each loan officer is responsible for households in three different villages [2]. As of 2009, PSBC reports to the Microfinance Information Exchange (MIX) a gross loan portfolio of USD 18.5 billion and 1.6 million active borrowers.
About the Postal Savings Bank of China (PSBC): The Postal Savings Bank of China (PSBC) is a commercial bank founded in China in 2007 that seeks to provide retail banking services to low-income customers. As of 2009, it has 36,000 branches spread over 31 provinces in China. As of 2009, PSBC reports to the Microfinance Information Exchange (MIX) a gross loan portfolio of USD 18.5 billion and 1.6 million active borrowers.
By Diana Baide, Research Assistant
[1] UN Data. China: Economic Indicators.
http://data.un.org/CountryProfile.aspx?crName=China#Economic
[2] The Economic Observer. “China Postal Savings Bank’s Microfinance Breakthrough” by Tian Yun, 17 November 2010
http://www.eeo.com.cn/ens/finance_investment/2010/11/17/186139.shtml
MicroCapital’s Microfinance Universe profile: Postal Savings Bank of China
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Postal+Savings+Bank+of+China
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