To help rural households get loans, a risk compensation fund system has also been established to direct more financial resources to the impoverished areas and people.

 

In Sichuan Province, such risk compensation funds are available in all 160 registered poor counties, totalling 3.4 billion yuan as of June this year.

 

Across the country, a total of 470 billion yuan of small loans have been issued to nearly 19 million registered poor households between late 2014 and May this year, according to Hong Tianyun, deputy director of the State Council Leading Group Office of Poverty Alleviation and Development.

 

"Poverty alleviation microloans have become an innovative way to reform China's rural financial system," Hong said.

 

"In the future, China will continue to promote inclusive finance in impoverished areas and try to solve the problems of poor people's loans," he said.