Regulators support creation of 12 new private banks

Twelve privately owned banks have entered the project demonstration stage before getting final approval to begin operations, said the China Banking Regulatory Commission on Wednesday.

The CBRC has written detailed rules specifying the principles, policies, standards and procedures for the approval of the establishment of private banks. The market niche for these private banks includes internet finance and supply chain finance, depending on the backgrounds of their major shareholders and local government support. They will mainly target micro and small companies.

So far the CBRC has approved five private banks to start operation. As of March 31, total assets of the five private banks reached 95.94 billion yuan ($15 billion), up 21 percent from the beginning of this year. Their balance of loans increased by 51 percent to 35.65 billion yuan and balance of deposits rose 11.6 percent to 22.25 billion yuan during the same period, according to the CBRC.