Financial crisis spreads for

With the global downturn, exports have fallen, factories have shut in large numbers, and millions of unemployed migrant workers have had to go back to their rural homes. These developments lifted the need to raise rural incomes and boost rural consumption to the top of policymakers' agenda.

The December 2008 central rural work conference ended with a commitment to maintain the annual growth of farm incomes at 6 percent. The unemployed migrant workers, estimated at about 20 million, were also encouraged to start their own business with the aid of subsidies and loans.

These developments "would prompt more financial institutions to launch rural operations to offer loans to these migrant workers," Li Jing said.

A PBOC official said in February the bank would continue to expand rural funding channels and urged commercial banks to lend to farmers for consumption, such as purchases of home appliances and agricultural tools. The central bank would also announce measures to support migrant workers who wanted to start their own businesses.

The CRBC said in October that it wanted to ensure that all villages and counties would have access to financial institutions within three years.

Chinese banks expand abroad

While foreign banks are moving to tap rural market potential, the big domestic banks seem to have more interest in exploring the outside world than the underdeveloped rural regions of China, as they aim to upgrade their global competitiveness.

Yin said Chinese banks felt they had to go overseas, as China had become more involved in the world economy and its currency was gaining a broader global role.

However, he said, for any financial institution in any country, the domestic market was the foundation of its business. He urged Chinese banks to give more attention and support to the rural market.