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Post office expands banking

By Zhang Fengming (Shanghai Daily)
Updated: 2007-02-27 14:32

Chinese and expatriateretailcustomers are eligible to open current and term deposit accounts and conduct forex remittance at postal outlets.

The services are approved by theChina Banking Regulatory Commission. Before the move, the post offices could accept only yuan deposits.

More reforms are in the pipeline.

Starting Thursday, Shanghai Post will offer small loans at five outlets in Hongkou, Nanhuiand Fengxian districts.

Customers can use their term deposits as collateral up to 300,000 yuan (US$38,710).

Loan amounts will range up to 90 percent of the value of the deposits. Interest will be set at the benchmark rate used by the People'sBank of Chinaif the loan is for up to one year. Borrowers can also apply for preferential rates on longer loans.

The loan services will be expanded to other postal outlets in the second quarter.