The CBRC issued Notice on Improving Financial Services for Migrant Workers


To implement the Guiding Opinions of the General Office of the State Council on Supporting Economic Restructuring, Transformation of the Economic Development Patterns, and Industrial Upgrading by the Financial Sector, intensify financial support for weak aspects of agriculture, farmers and rural areas and give full play to the financial services in economic restructuring, improving people's wellbeing and promoting development, the CBRC recently issued the “Notice on Improving Financial Services for Migrant Workers” (hereinafter referred to as "the Notice"), requiring banking institutions to summarize experiences, continuously improve financial services for migrant workers in the process of urbanization to better meet their demand and provide them with easier access to loans.

The Notice pointed out that, banking institutions, especially small and medium financial institutions in rural areas, should focus on the “Three Projects” that support rural financial services to improve the management of credit files for migrant workers, establish information sharing mechanism with village committees and community service centers and to ensure that the credit files cover every migrant worker. We should make full use of "soft information", such as personal conduct, earning capability and other credit information, promote the implementation of public credit appraisal, dynamically adjusted credit rating and credit limits and solve the problem of information asymmetry.

The Notice requires that banking institutions should focus on supporting migrant workers to find jobs or start businesses by providing loans and innovate services and products that can meet actual demand based on the trend of loan diversification. We should open up "Green Channel" to offer new loan products for migrant workers’ employment, consumption, starting business in their hometowns and other demands. We should also make flexible use of various financial instruments to provide comprehensive financial services, such as deposit, loans, exchange, transfer, credit cards, wealth management and consultancy so that migrant workers can equally enjoy the benefits of modern financial development.

The Notice stressed that financial services should cater to the real demands of migrant workers and provide them with easier access to loans. We should encourage small and medium financial institutions in rural areas to promote the "financial services center" approach, and set up service outlets so that migrant workers can enjoy convenient services. Financial institutions in their working areas should also allocate some small loans guaranteed by the employers to solve their urgent financial needs. Banks should cooperate with creditable labor agencies and deal with service loans in mass scale. We should also explore loan management approaches that aim at vocational training institutes and offer training to migrant workers and provide more training and education opportunities to promote rural employment.

The Notice requires banking institutions to implement “Sunshine Credit”, further simplify loan procedures, reduce approval time and set reasonable duration. We should cultivate leading enterprises of agricultural industrialization, propel the development of rural cooperatives, support key local construction projects with huge demand for fund and long construction period as well as competitive agricultural industries, and attract more migrant workers who come back to their hometown to participate in local production and construction. We should accelerate the establishment of a modern payment and settlement network that covers most rural banking institutions and promote the application of modern payment instruments such as online banking, mobile banking and telephone banking in rural areas. We should strengthen the publicity and education of financial knowledge for migrant workers and constantly raise financial awareness and enhance the capability of using modern financial instruments and products. We should advance the publicity of financial and legal knowledge, help migrant works and their family members raise awareness of financial security and keep them from illegal fund-raising so as to protect their financial rights and interests.


Copyright: China Banking Regulatory Commission
ADDR:Jia N0.15 Financial Street, Xicheng District, Beijing, 100033