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China’s 13th Five Year Plan for the Finance Sector
In January 2016, China State Council announced the Plan for Promoting the Development of Inclusive Finance (2016-2020). The goal of the Plan is to set an inclusive finance system that is in coordination with the construction of a moderately prosperous society by 2020 and satisfies people’s need for financial services, the State Council said. The financial services will be offered by financial institutions to micro-businesses, farmers, low-income population in urban areas, poor population, the disabled, and senior citizens. Under the new policy, full coverage of bank and insurance services will be accomplished in rural areas, and financial support will be improved for low-income population in urban areas, the poor, farmer entrepreneurs, college student entrepreneurs, and the disabled.
According to the circular, the coverage rate for farmer households that take part in agricultural insurance will be raised to above 95 percent. Banks will play an important role in lowering debt costs for micro-businesses and improving financial services in mid-west regions, grain-producing areas, and regions that are hubs for micro businesses.
To improve financing services for micro-businesses, efforts will be made to expand financing channels of petty loan companies and pawnshops. Financial leasing companies and equipment leasing companies are encouraged to better support improvements for equipment and technology at micro-businesses and agricultural companies. Emerging technologies such as big data and cloud computing will be used to build Internet financial service platforms for customers.