Three pri­vate banks ap­proved in trial project

China Daily (Canada) - - NEWSCAPSULE -

The launch of three pri­vate banks was ap­proved by China’s Bank­ing Reg­u­la­tory Com­mis­sion in a trial aimed at al­low­ing pri­vate cap­i­tal a big­ger role in the coun­try’s fi­nan­cial sys­tem.

The banks are in the cities of Shen­zhen, Wen­zhou and Tian­jin and are sub­ject to the same reg­u­la­tory rules as their state-owned coun­ter­parts.

The ad­vent of pri­vate lenders is ex­pected to raise the ef­fi­ciency of the al­lo­ca­tion of fi­nan­cial re­sources in China, where the state-dom­i­nated bank­ing sec­tor usu­ally fa­vors large and state-owned com­pa­nies.

Another two pri­vate lenders are in the pipe­line, ac­cord­ing to the com­mis­sion, and more will be ap­proved if the trial goes smoothly.

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