Date
25 September 2017

5-yr lock-up for founding stakes in private banks, paper says

The founders of a test batch of private banks will have to hold on to their stakes for at least five years to ensure ownership stability and sound operations, the China Securities Journal reported Wednesday, citing Yan Qingmin, vice chairman of the China Banking Regulatory Commission. The founding shareholders and their affiliated firms will also be “encouraged” to surrender the right to get loans from their banks. To protect depositors, the founders will have to promise to repay all of the deposits and other debts should their banks fail, the report said.

– Contact HKEJ at [email protected]

TL/AC/SK

 

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