China is simplifying approval procedures in a bid to open its banking sector more widely to private firms, said China Banking Regulatory Commission (CBRC) chairman Shang Fulin.
The Study Times quoted Fulin saying that the watchdog "is speeding up the issuance of guidelines on the development of private banks."
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He pledged to simplify approval procedures of CBRC and let the regulator’s local offices handle more responsibility.
Fulin said that the private firms will get a boost to join the restructuring of high-risk city commercial banks, rural credit cooperatives as well as non-banking financial institutions, with current shareholders of these small banks encouraged to reduce their stake to enable more participation by private firms.
Private firms will also be encouraged to establish banks in small towns and villages and hold a bigger share in such financial institutions, Fulin added.
Shang further said that Chinese banks should focus more on quality growth, than asset expansion, as well as explore new markets and pace up innovation instead of competing for a larger share of present business.
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