China to allow set-up of fully private banks this year


China will allow three to five fully private banks to be set up this year as part of efforts to further open up the sector, the banking regulator said.

At a work conference on Monday, the China Banking Regulatory Commission (CBRC) said it will allow private capital either to take part in restructuring existing banks or set up new ones at their own risk, according to a statement.

“The first batch of three to five private banks will be set up on a trial basis,” the CBRC said, adding they will be approved when conditions are “mature”.

Communist authorities retain a strong grip on the economy. At present almost all banks are state-owned, either at the national or local level, although some have floated minority stakes.

Senior bank officers must be approved by the CBRC.

The latest move is in line with a document released in November after a key Communist Party meeting at which Beijing pledged to open up its financial sector to both foreign and private capital.

But in a sign that controls would only be loosened so far, the regulator said the new entities would be subject to strict procedures and enhanced supervision.

So far nearly 70 private banks have won tentative approvals from China’s industry and commerce authorities, the state-backed Securities Daily reported.

Companies keen to establish private banks include home appliance retailer Suning and Internet giant Alibaba, which has an existing third-party payment business division, state media said.

The CBRC also pledged gradually to relax restrictions on foreign capital entering the domestic banking sector and conducting yuan business.

Source : Channel News Asia | January 8, 2014


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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