The official Study Times on Sunday has today quoted Shang Fulin,chairman of the China Banking Regulatory Commission as saying private firms will be encouraged to join the restructuring of "high-risk" city commercial banks, rural credit co-operatives and non-banking financial institutions
Shang says
The CBRC is speeding up the issuance of guidelines on the development of private banks
He is also reported in the paper, published by China's Caommunist Party School, as saying that private firms will also be encouraged to set up banks in small towns and villages and hold a bigger share in such financial institutions. He added that existing shareholders in these small banks are encouraged to cut their stake to allow more participation by private firms
He also:
- urged Chinese banks to adapt to the "new normal" of the economy and focus on quality growth rather than expanding assets
- pledged to simplify CBRC's approval procedures and let the regulators' local offices take more responsibility
Reuters reporting
All part of the new reforms and will go a little way to appeasing critics of China's state-dominated banking system for giving a disproportionate amount of lending to large state-owned firms
