A LEADING Asian Development Bank official has called for more village banks to be set up in China's rural areas to provide farmers with easier access to small loans and the opportunity to deposit savings.
　　
"Only a few of the experimental village banks can meet the financial needs of farmers in remote villages," said ADB China representative Tang Min. "Each province should have at least one bank to provide access to small loans," Tang said.

The most remote counties should be the primary targets, said Du Xiaoshan, deputy director of the Rural Development Institute of the Chinese Academy of Social Sciences and an expert on rural small loans.

"The current bottleneck in rural financial services lies mainly in central and west China as well as in parts of northeast China, especially in counties that are under the national poverty line," Du said.

The experimental rural banks, announced by the China Banking Regulatory Commission, the industry watchdog, are located in less-developed provinces.

The first village banks were inaugurated on March 1. "No warranty or mortgage is required for farmers to get a loan," said Li Xinghua, president of Rongfeng village bank. Li said the interest rate on loans made by the banks is slightly higher than the current interest rate in urban markets because of higher costs and risks.