The number of China's village banks reached 1,000 on Sunday, boosting their local economies with loans and financial support, according to statistics from the China Banking Regulatory Commission.

The landmark was reached by a village bank opening in Gansu province in northwestern China, initiated by Ma'anshan Rural Commercial Bank, according to the commission.

There has been steady growth in village banks. Over half of the 1,880 counties throughout the country have village banks.

As of late August, village banks held 520.4 billion yuan ($85 billion) in assets and lent 122.8 billion yuan to farmers and 159.8 billion yuan to small businesses, accounting for 89 percent of the total loans.

Village banks are open to a variety of investors, particularly private capital. Private funds hold 70 percent of the shares in these banks.

Risks are under control, with the rate of non-performing loans at 0.45 percent and provision coverage at 480 percent by the end of August.

The commission encourages village banks to extend loans to mid and western regions, remote and poverty-stricken areas and small and micro enterprises.