The China Banking Regulatory Commission (CBRC) has submitted draft policy proposals on private banks to the State Council for review and approval, the Shanghai Securities News reported Monday, citing Chen Sheng, deputy director of the CBRC’s Banking Innovation Supervisory Division. According to He Xiaoyong, a professor with the East China University of Political Science and Law, the biggest hurdle with private banks at present is the lack of a deposit protection scheme, the report said. Authorities are working on an insurance protection scheme to prevent any major crisis in the event of bankruptcies. Some analysts were hopeful that private bank licenses could be granted within the first quarter of 2014, the paper said.
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