Local financial institutions should increase credit loans for farming while curbing those for non-agricultural purposes as the country had adopted a tightening monetary policy, the central bank said.

Rural credit cooperatives were allowed to take advantage of floating rate policies to set a more favorable loan interest rate for farmers.

In addition, the central bank would continue its relatively lower reserve requirement ratio for rural credit cooperatives.

It would also appropriate 10 billion yuan (1.4 billion US dollars) to increase funds for farm loans to support the central and western regions as well as major grain production areas.