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China announces new private banks
January 7, 2014, 7:18 am

China's four largest state-owned banks earn the most among the top 500 Chinese companies, according to an annual list released by Fortune in July 2013 [Getty Images]

China’s four largest state-owned banks earn the most among the top 500 Chinese companies, according to an annual list released by Fortune in July 2013 [Getty Images]

China has given the go-ahead to set up three to five private banks as part of a pilot scheme this year in a bid to further open up the banking sector to domestic and foreign capital, China’s banking regulator said Monday.

A statement released after a work meet of the China Banking Regulatory Commission (CBRC) said private capital will be introduced to restructure current banking institutions or set up new ones bearing their own risks.

“The first-batch of three to five private banks will be set up under a pilot scheme,” it said.

The CBRC said it would set in place “prudential regulatory standards” with a set-up criteria, limited licenses, enhanced supervision and a risk handling system.

Chinese banks top the list of the world’s most profitable banks now even as European banks’ profits have fallen over the years.

China’s four largest state-owned banks earn the most among the top 500 Chinese companies, according to an annual list released by Fortune in July 2013.

Meanwhile, the CBRC said on Monday it will try to relax the threshold for foreign capital to enter China’s banking sector and ease Renminbi operation requirements, while more policies will be issued to support banking reform in the Shanghai free trade zone and the financial reform pilot zone.

According to a China Daily report, the banking sector was the most lucrative industry in the A-share market in China in the first half of 2013.

China’s Central Bank Governor Zhou Xiaochuan had said in November 2013 that the administration is working on more reforms in the banking sector.

 

TBP and Agencies

One Response to China announces new private banks

  1. Andrew Shearer Reply

    February 12, 2016 at 8:33 pm

    does the BRICS bank plan to open for business with individual depositors/investors in the UK. Given the current state of Global banking at this moment in time, it would be a welcome alternative to what we are forced to endure

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