China approved a reorganization that will keep China Development Bank Corp. and two other lenders focused on providing policy-driven funding, the State Council said today in a statement.
The Export-Import Bank of China will further strengthen its role in supporting policy initiatives, while the Agricultural Development Bank will concentrate on funding in support of sustainable growth, the Council said in separate statements.
The reorganization reinforces the roles the three so-called policy banks play in executing China’s development initiatives. China Development Bank designed the nation’s stimulus framework through the global financial crisis, pumping credit to local governments to ramp up infrastructure spending and selling trillions of yuan of bonds in the interbank market.
China Development, the largest of the three lenders set up in 1994 to take over government-directed spending functions, serves the nation’s medium- and long-term economic development strategies, according to its website. The bank will develop markets and support both important sectors and weaker segments as China becomes more internationalized, according to today’s statement.
The state-owned lender to government programs created the system of local financing for infrastructure projects, helping to fund highways, schools, dams and housing developments across the country.
In March, Development Bank issued a 320 million yuan ($51 million) loan to JinkoSolar Holding Co. to help the company expand its solar operations.
The Export-Import Bank provides credit and loans for overseas expansion, to assist Chinese companies in outbound investments and facilitate the trade of Chinese mechanical and electronic products, according to its website.
— With assistance by Liza Lin, and Alexandra Ho