Business / Markets

Licenses for private banks coming soon

By Yu Ran in Shanghai (China Daily) Updated: 2014-02-26 08:46

The first batch of three to five privately owned banks are expected to win licenses around the period of the 12th National People's Congress and 12th National Committee of the Chinese People's Political Consultative Conference in early March, the China Securities Journal has reported.

Licenses for private banks coming soon

Licenses for private banks coming soon

So far, more than 100 proposed private banks have had their names approved by the State Administration for Industry and Commerce.

Four of those names were approved just after the Spring Festival, which ended in early February.

The China Banking Regulatory Commission has no confirmed schedule for issuing the licenses, according to Zhang Bocheng, an official in the agency's public relations office.

"We haven't received any further instructions on when and how to issue licenses for privately owned banks," said Zhang.

Zhang added that the first licenses probably won't be awarded before the opening of the "two sessions", which start in the first week of March.

During a CBRC videoconference last month, participants were told that initial regulations covering private-sector banks will be a focus of the agency's work this year.

Initially, it will issue restricted licenses to qualified private capital holders who can demonstrate strong supervisory and risk control abilities.

These banks should be totally funded by private capital, with shareholders bearing the risks.

Three to five such banks will be launched under a trial program. Others will be approved on a case-by-case basis.

Licenses for private banks coming soon

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