Three private banks approved in trial project
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.