China Sees Rapid Growth of Postal Savings

The total amount of post office deposits in China reached 362.2 billion yuan by the end of June this year, accounting for 6.12 percent of the country's total savings deposits.

The State Postal Bureau (SPB) has become the fifth biggest recipient of savings deposits in the country, following the four Chinese commercial banks.

An SPB official said that the savings service has grown into one of the pillar businesses of the SPB since it was restored in 1986.

So far, the SPB has set up 31,646 offices handling postal savings around the country, with 102 million people opening savings accounts at the offices.

Despite the fact that China's central bank has repeatedly lowered its interest rates over the past 18 months, postal savings have continued to grow -- to 261.3 billion yuan by the end of last year -- an increase 19.9 percent over one year ago.

Postal remittances have grown at a rapid rate, in both the network and volume of transactions.

The postal savings service is improving its efficiency and service quality through computerizing its remittance management system and over-the-counter services. Some 31 provinces and municipalities nationwide now conduct postal money order exchanges with 17 countries and regions, including the United States, Japan and Switzerland.

Nearly 600 counties in 30 provinces and municipalities have adopted auto-banking of current accounts through a universal real- time computer system. Within the next 12 months, the computer system will be expanded to enable transactions, settlement and network management between provinces and among banks.

At the same time, the postal savings sector has started many new services, such as insurance agency, treasury bonds agency, salary and pension payment, special remittance and savings remittance.

Local analysts said that the postal savings services have developed so rapidly because the SPB has the largest real-time computer system in the country. Its has such competitive edges as large numbers of outlets, low charges, convenience, reliability and long service hours.