HSBChasgotthenodfromChina'sbankingregulatortosetupavillagebankinthecentralprovinceofHubei,becomingthefirstforeignbanktoexpanditsbusinessinthecountry'svastruralareas,HSBCannouncedonThursday.

　　ThevillagebankwillbeopenedinZengduDistrictwithapopulationof2millioninSuizhouofHubeiProvinceattheendof2007andisexpectedtoemploy25people.

　　"Thenewbankwillprovidefinancialservicetailoredtoruralcommunitiesandlocalenterprises,"saidVincentCheng,chairmanoftheHSBCBank(China)CompanyLtd.

　　Chinesefarmersandruralenterprisescurrentlyhavefewplacestogetfundsfortheirbusinesses.OfficialfiguresshowChinesefarmersrarelyobtainloansofmorethan5,000yuan.

　　OnMonday,theChinaBankingRegulatoryCommission(CBRC)vowedtohelpmorebankinginstitutionstoextendserviceintheruralareasasawaytoupgradethecountry'sunder-developedruralbankingsector.

　　Attheendof2006,theCBRCscrappedworkingcapitallimitsfordomesticfinancialinstitutionsinruralareassothatbankingnetworkscouldbedevelopedinthecountryside.

　　Italsoloweredtheregisteredcapitalthresholdto3millionyuan(385,000U.S.dollars)forbanksincountiesand1millionyuaninvillagesandtowns.

　　TheCBRChasapprovedsixpilotschemesinsixprovincesincludingQinghaiandGansu.Twoofthem--HuiminvillagebankandHuiminfinancecompany--beganoperationslastThursdayinYilongcountyofsouthwestChina'sSichuanProvince.

　　HSBChasdevelopedfinancialbusinessinruralareasinBrazil,India,Indonesia,PhilippineandMexico.(Xinhua)