Beijing, China, August 6, 2009
—IFC, a member of the World Bank Group, has agreed to invest 5 million Chinese renminbi (equivalent to $700,000) in Renshou Minfu Rural Bank, a village and township bank in Sichuan Province, to support financing for micro and small businesses in rural China.
IFC also will provide advisory services to enable Renshou Minfu Rural Bank to increase operational efficiencies, adopt advanced risk management practices, and provide high-quality products and services.
The establishment of Renshou Minfu Rural Bank in Sichuan’s Renshou County in December 2008 was a major initiative undertaken by Leshan City Commercial Bank to promote microfinance. The partnership will combine Leshan City Commercial Bank’s deep understanding of the local market with IFC’s global expertise in microlending.
“Renshou Minfu Rural Bank will provide much-needed financing for farmers and rural enterprises in Central Sichuan,” said Michael Ipson, IFC Country Manager for China. “IFC’s rural strategy focuses on providing greater access to finance for micro and small businesses, and funding of agriculture. We are very pleased to partner with Leshan City Commercial Bank in this venture.”
Leshan City Commercial Bank is the largest shareholder of Renshou Minfu Rural Bank. Leshan City Commercial Bank and IFC have a relationship stretching over more than six years. IFC has provided training in bank operations, development of credit manuals and risk-rating tools, training and performance-based human resource management. This long relationship has become the foundation for co-investment in microfinance operations.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $15 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About Leshan City Commercial Bank and Renshou Minfu Rural Bank
Leshan City Commercial Bank was founded in February 1997 and is headquartered in the Leshan Municipality. As of end of 2008, the bank has 325 million Chinese renminbi in registered capital, 471 employees, and 28 branches.
Renshou Minfu Rural Bank was established in December 2008 with paid-in capital from Leshan City Commercial Bank and local investors. The bank opened its first branch in Wenlin town, in the central and more developed part of Renshou County, and plans to open a second branch in the Wangyang town, the oldest district with the most registered micro, small, and medium enterprises. The bank aims to become a leading village and township microfinance bank in China.
