Alibaba is reportedly set to file an application for launching a micro-savings and micro-loans internet bank after claiming the record for the largest US-listed initial public offering.
The internet bank will offer a wide range of online transactions conducted entirely in online mode and without the need to establish offline physical banks, Economic Information Daily reported.
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In July this year, the China Banking Regulatory Commission (CBRC) had shown the green light for building three private banks, but it did not include Alibaba name.
The final approval of the application is expected to be decided by CBRC by the end of September.
At present, China’s banking regulations require banks to only build physical presence, but they have no banks as proposed by Alibaba or any regulations in place for them.
Hence, if this plan secures the go-ahead, regulations will have to be changed and strategies should be considered to connect internet banks and traditional banks.
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