Village bank investment model to be expanded

China is moving to improve its model for managing investment in village and township banks, with the aim of enhancing these banks' ability to operate sustainably, protect against risks and support agro-related businesses and small companies.

The China Banking Regulatory Commission launched a pilot program on Friday, allowing qualified commercial banks to set up village banks, or to choose an existing one and serve as its investment manager.

Before the regulator launched this pilot program, the main founder of a village bank used to either designate an internal department, set up a specialized department, or entrust a branch to lead the management of the bank.