Five New Private Chinese Banks Will Open This Year

Up to five private banks will be created in China this year as it looks to open up the financial sector and raise competition in the industry.

The banks will be allowed to operate on a trial basis under the supervision of Chinese banking authorities.

Private finance will be used to either restructure existing banks or set up new ones “bearing their own risks”.

China has been looking to open up its tightly-controlled financial sector to spur a fresh wave of economic growth.

“Strict procedures and standards will be set for the pilots, with demanding set-up criteria, limited licenses, enhanced supervision and a risk handling system,” China Banking Regulatory Commission (CBRC) was quoted as saying by the state-owned Xinhua news agency.

The CBRC also said that it would explore lowering the threshold for foreign banks to enter the industry.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza