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Directions (11 – 15): In the given passage there are blanks, each of which has been numbered. Against each five words are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.
If China's state owned commercial banks seem burdened by bad debts, the country's rural financial sector is even worse. In the villages, the only formal banking institutions are what are known as rural credit cooperatives. These enjoy the distinction in China of having been officially declared insolvent. The rural credit co-operatives are ill named. They are often reluctant to (11) and they are not run as co-operatives as they do not share any profits and their customers have no say in their operations. Until 1996, they were offshoots of the Agricultural Bank of China. Since then they have been (12) by the Central Bank, though they are in reality run by county governments. Even the word 'rural' is misleading. whole of their deposits are sucked up and put in the urban banking system. Farmers usually find it easier to (13) from friends or relatives or black market moneylenders. Yet the cooperatives remain a big part of China's financial system. Last year, they accounted for 12 percent of deposits and 11 percent of loans. In recent years, commercial banks (including the Agricultural bank) have closed down (14) in the countryside. Yet some 40,000 credit co-operatives remain in place with one in almost every township (as the larger villages or smaller) rural loans are known. If as the government claims, the credit co-operatives are beginning to turn a profit after six years of losses, it is not because they are any better run. In an effort to (15) a stagnant rural economy, the central bank has pumped more than $9 billion into them hoping that they will lend more to fanners. But the root causes of their problems remain and the real solution may have to involve a mix of approaches from commercial banking to real cooperatives.
If China's state owned commercial banks seem burdened by bad debts, the country's rural financial sector is even worse. In the villages, the only formal banking institutions are what are known as rural credit cooperatives. These enjoy the distinction in China of having been officially declared insolvent. The rural credit co-operatives are ill named. They are often reluctant to (11) and they are not run as co-operatives as they do not share any profits and their customers have no say in their operations. Until 1996, they were offshoots of the Agricultural Bank of China. Since then they have been (12) by the Central Bank, though they are in reality run by county governments. Even the word 'rural' is misleading. whole of their deposits are sucked up and put in the urban banking system. Farmers usually find it easier to (13) from friends or relatives or black market moneylenders. Yet the cooperatives remain a big part of China's financial system. Last year, they accounted for 12 percent of deposits and 11 percent of loans. In recent years, commercial banks (including the Agricultural bank) have closed down (14) in the countryside. Yet some 40,000 credit co-operatives remain in place with one in almost every township (as the larger villages or smaller) rural loans are known. If as the government claims, the credit co-operatives are beginning to turn a profit after six years of losses, it is not because they are any better run. In an effort to (15) a stagnant rural economy, the central bank has pumped more than $9 billion into them hoping that they will lend more to fanners. But the root causes of their problems remain and the real solution may have to involve a mix of approaches from commercial banking to real cooperatives.
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