The Ministry Of Finance Expands The Scope Of Directional Fee Subsidy Policy For Rural Financial Institutions

Financial [2010]41

The financial offices (bureaus) of all provinces, autonomous regions, municipalities directly under the central government and cities under separate planning, the Finance Bureau of the Xinjiang production and Construction Corps, and the office of the Ombudsman of the Ministry of Finance in all provinces, autonomous regions, municipalities directly under the central government and cities under separate planning.

Since 2009, financial departments in various areas have been actively implementing the directional cost subsidy policy of new rural financial institutions, guiding social capital to "three rural issues", supporting the coordinated development of urban and rural areas, and achieved good results.

In accordance with the spirit of the CPC Central Committee and the State Council on increasing the overall planning for urban and rural development and further consolidating the foundation for the development of agriculture and rural areas ([2010]1), in order to consolidate and expand the results of the targeted cost subsidy of new rural financial institutions, the following matters are hereby notified as follows:

1. In order to steadily expand policy coverage, further improve rural financial services, and better support urban and rural co-ordination development, from 2010 to 2012, the scope of cost subsidy will be extended to weak areas where basic financial services are available.

Two, the central government provides subsidies to the banking financial institutions in the weak areas of basic financial services, according to the 2% of the average loan balance of that year.

The subsidy will be allocated in the next year.

The scope of the weak areas of basic financial services shall be carried out in accordance with the Interim Measures for the management of the directional fee subsidy funds of the central financial and rural financial institutions (financial [2010]42 number).

Financial institutions that had already enjoyed the orientation fee subsidies of new rural financial institutions did not enjoy repeated subsidies.

The application, examination and allocation of subsidy funds for new rural financial institutions in three and 2009, continue to implement the Interim Measures for the management of directional cost subsidy funds of the new type of rural financial institutions of the central finance authority (Finance [2009]31).

Starting from 2010, the application, examination and allocation of subsidy funds for rural financial institutions (including new rural financial institutions) shall be carried out uniformly, and the financial document [2010]42 shall be implemented uniformly.

Treasury Department

May 18th, two