China's central bank has recommended breaking up the huge but financially troubled Agricultural Bank of China, the fourth biggest bank, a newspaper reported Monday.

A breakup was the "preferred proposal" among several submitted to the Cabinet by central bank Gov. Zhou Xiaochuan, the China Business Post said, citing unidentified "authoritative channels."

The Agricultural Bank has lagged behind China's other major state-owned commercial banks, which have been recapitalized by the government and found foreign strategic investors.

The central bank would turn the Agricultural Bank into a group of provincial-level banks, which could let Beijing force provinces to share in the cost of shoring up its balance sheet, the Business Post said.

The Agricultural Bank's press office didn't immediately respond to requests for information.

The bank last week reported that its profits for 2005 were 1 billion yuan (US$125 million). But the bank says nonperforming loans account for 26 percent of its total.

According to the newspaper, other proposals on the list resemble the treatment given to China's other big banks, which are preparing to raise money with stock offerings in Hong Kong.