Let Private Capital Set Up Banks, Zhou Xiaochuan Argues
(Beijing) – Central bank governor Zhou Xiaochuan published an article in a Communist Party magazine on September 16 that calls for inclusive financial development that includes allowing private capital to set up banks.
The article appeared in Qiushi, a semi-monthly publication of the Central Party School, the party’s think tank and ideological training school. It said the central bank will follow the "mass line" set by the party’s Central Committee.
This involved measures including increasing lending to small and medium-sized enterprises, expanding financial services in rural areas, and beefing up consumer protection and education regarding financial products. In addition, he said the central bank will encourage financial innovation and guide the development of Internet finance.
Zhou emphasized the need to "support private capital to set up private banks and guide them to position themselves in serving the small and micro companies."
Since June, several private companies’ applications to set up banks have received "preliminary approval" from the State Administration for Industry & Commerce.
Next, they had to wait for the green light from the China Banking Regulatory Commission (CBRC). Applicants included retail giant Suning Commerce Group Co. Ltd. and Hubei Kaile Science and Technology Co. Ltd., a high-tech new materials manufacturer.
Suning’s documents are with the CBRC’s branch in the eastern province of Jiangsu, Caixin learned. A CBRC official said in late August that none of these private bank applications have reached the commission’s headquarters.
However, a CBRC document obtained by Caixin showed that one of the agency’s priorities in the second half of this year is to push for "more pilot programs of private financial institutions that bear their own risks."
In the article, Zhou cited the success of financial development programs in Brazil and Mexico and applauded their innovation and effectiveness.
- In Monday's Papers: Bourses in Shanghai, Shenzhen Slip; Tencent and JD.com Join Forces
- Li Ka-shing's Remedy for 'Coddled' HK
- The Week in Photos: March 1 – 7
- Missing Airplane
- Lianghui Quotes: March 10
- Expert Blames Unrealistic Expectations, Poor Policing for Attacks on Doctors
- Closer Look: NPC Meeting Makes Progress on Tax, Budget Fronts
- Closer Look: Relatives of Passengers on Missing Flight Have Long Wait, Few Answers
- The Avoidance of Labor and the Work of Art
- Hidden Anguish
- Sign up to receive our free daily newsletter
- Eyes on the Prize
- Zhou Family Was Influential in Jiangsu City before Corruption Inquiry
- The Logic of the Left in China
- Jilted U.S. Investors and Debtors on the Run
- Caixin Explains: The 'Lianghui' Meetings
- U.S. Economy, Regulatory Approach Reaching Higher Ground, Policy Veteran Volcker Says
- China to Grow at 7.5 Pct and Focus on Reforms, Premier Says
- Graphics: Rich Representatives
- Consumption Will Be a Main Driver of Economy, Li Says
- Media Watch: Kunming Attack Is 'China's 9/11,' State Media Says