China's banking regulator will strengthen county-level financial services by expanding capital-raising channels and promoting financial innovation in order to support economic development, a senior official said Sunday.

Jiang Dingzhi, vice chairman of the China Banking Regulatory Commission (CBRC), was speaking in Beijing at a seminar on China's county-level economic development, which was attended by economists and more than 100 county-level officials.

Financial services in counties still failed to meet the needs of their local economic development, Jiang said.

The banking regulator would encourage big commercial lenders to open outlets in counties to ensure rural residents had easy access to basic financial services.

The banking authority would also guide excess urban funds to support county-level economic development, and properly regulate the development of small-loans companies.

The CBRC would encourage quality county-level enterprises to raise funds through bond issues and initial public offerings, Jiang said.

Telephone banking and on-line banking should continue to be promoted among rural residents, he said.

Jiang said the CBRC should accelerate the establishment of rural financial institutions, such as township and village banks, while strengthening supervision of these institutions.

(Xinhua News Agency December 20, 2010)