Agricultural Bank of China To Increase Lending

Matt Hopkins Posted by Matt Hopkins|11 November 2008

The state-owned Agricultural Bank of China (ABC) signed an agreement with Central Huijin Co., an investment arm of the Chinese government, for a US $19 billion capital injection, giving Central Huijin and the Ministry of Finance each half of the bank’s ownership. Bank president Xiang Junbo said this would boost the bank’s capital base, improve its financial status, and enhance its profitability.

According to Xiang, as of Sept. 30, 2008, bank loans totaled $581.8 billion, rising by about $43.97 billion from a year earlier. Of the loans, $203.7 billion went to agriculture-related projects, up almost $17.6 billion year-on-year. Xiang said one of the bank’s major tasks after the capital injection would be to develop its rural network and increase agricultural lending, reports China View.

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