Date
19 October 2017

More private capital sought for banking sector, CBRC says

Private investors will be allowed to increase their stakes in certain rural banks and agricultural cooperatives, Yan Qingmin {閻慶民}, vice chairman of the China Banking Regulatory Commission, said Monday.

In addition, they are being encouraged to establish privately owned banks.

At present, private capital owns about 42 percent of Chinese shareholding banks and 54 percent of urban commercial banks compared with 11 percent and 19 percent in 2002, respectively, Yan told a forum in Beijing.

In some rural lenders and small and medium-sized financial institutions, private capital owns more than 88 percent of equity, he said. 

The banking regulator will continue to encourage private capital to take part in financial reform while allowing private funds to set up financial leasing companies and private banks, he said.

The move is in line with reforms announced recently by the Communist Party at the end of its third plenum.

– Contact HKEJ at [email protected]

JP/RA

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