According to a recent report on China- Online.com, rural China is now facing a severe credit squeeze as the RCCs seek to clean up their books at the same time as the big four banks close branches in the countryside and the postal savings system (which traditionally does not make loans) takes a larger share of total deposits. Postal savings offices in some areas now drum up business using slogans such as ‘low risk at postal sav- ings banks, which only take in and don’t give out’. However, one unexplained comment in the 2001 almanac suggests that this situation may be changing as well:
‘The People’s Bank of China will also recycle postal savings funds at county level and below through re-lending for use in the villages, drastically improving relations between postal savings bureau and local governments and powerfully encouraging the high-speed development of the village postal savings business.’
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