The Ministry Of Finance Expanded The Scope Of Targeted Cost Subsidy Policy For Rural Financial Institutions

Cai Jin [2010] No. 41

The financial departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan, the financial bureaus of Xinjiang Production and Construction Corps, and the financial supervisors' offices of the Ministry of Finance in all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan:

Since 2009, local financial departments have actively implemented the targeted cost subsidy policy for new rural financial institutions, guided social funds to invest in "agriculture, rural areas and farmers", supported the coordinated development of urban and rural areas, and achieved good results. In accordance with the spirit of Several Opinions of the Central Committee of the Communist Party of China and the State Council on Strengthening the Overall Planning of Urban and Rural Development and Further Consolidating the Foundation of Agricultural and Rural Development (ZF [2010] No. 1), in order to consolidate and expand the results of targeted fee subsidies for new rural financial institutions, the relevant matters are hereby notified as follows:

1、 In order to steadily expand the coverage of policies, further improve rural financial services, and better support the coordinated development of urban and rural areas, from 2010 to 2012, the scope of fee subsidies was expanded to areas with weak basic financial services.

2、 The central government will subsidize 2% of the average loan balance of banking financial institutions in areas with weak basic financial services. The subsidy fund will be appropriated in the next year. The scope of areas with weak basic financial services shall be implemented in accordance with the Interim Measures for the Administration of the Central Government's Rural Financial Institutions' Targeted Expense Subsidy Fund (Cai Jin [2010] No. 42). Financial institutions that have enjoyed targeted cost subsidies for new rural financial institutions in the current year do not enjoy subsidies repeatedly.

3、 In 2009, the application, review and allocation of subsidy funds for new rural financial institutions continued to implement the Interim Measures of the Central Government for the Administration of Directional Expense Subsidy Funds for New Rural Financial Institutions (CJ [2009] No. 31). Since 2010, the application, review and allocation of subsidy funds of rural financial institutions (including new rural financial institutions) have been implemented in accordance with the Finance [2010] No. 42 document.

treasury department

May 18, 2010