CDB aims to double the $118.6B grassroots lending

China Development Bank witnessed the robust growth of grassroots finance in 2010.

The outstanding loans for small and medium-sized enterprises , middle- and low-income housing, students, and the development of new rural communities amounted to US$118.6 billion, accounting for about 20 per cent of its total outstanding RMB loans. In addition, CDB ranked first in China's banking sector in granting loans for middle- and low-income housing and students.

As pointed out by CDB Chairman Chen Yuan at the bank's meeting on grassroots finance, CDB as a major investment and financing bank has been committed to supporting the development of China's infrastructure, basic and pillar industries and focused on promoting international cooperation and grassroots finance in recent years. During the 11th Five-Year Plan period, CDB made lots of efforts to optimize the allocation of financial resources and achieved the differentiated development of grassroots finance.

In 2010, CDB's loans for SMEs, middle- and low-income housing, and the development of new rural communities all passed the US$15.2 billion mark.

According to Chen Yuan, 2011 marks the beginning of the 12th Five-Year Plan period and higher expectations are raised on CDB for the development of grassroots finance in the plan. Thus, the focus of 2011 will be on increasing the amount of middle- and low-income housing loans by RMB 100 billion. Besides, more financing support will be given to the development of anti-drought facilities, reservoir reinforcement, supply of safe drinking water in rural areas, transformation of supporting facilities in irrigation areas, small-scale farmland water conservancy and other projects so as to enhance the production capacity of agriculture and ensure yield growth and bumper harvests.

During the 12th Five-Year Plan period, CDB will strive to achieve the rapid and sound development of grassroots finance and increase the amount of outstanding loans in this regard from the current US$118.6 billion to US$240.3 billion, thus facilitating the change of economic development pattern and contributing more to economic and social development.

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Tags: aim, double, grassroots lending