Chinese banks face challenge by private companies’ entry into financial services
Beijing’s softer stance towards bank license issuance highlights willingness to restructure domestic financial industry.
If recent developments in China are of any indication, private businesses could very well end up being the bearers of change in the domestic banking industry, as Beijing's bid to shake up the sluggish financial industry saw China Banking Regulatory Commission (CBRC) inviting companies from across the various private industries to apply for banking licenses.
With the Beijing seemingly keen to create more investment opportunities for the private sector following premier Li Keqiang's speech in June 2013 encouraging private capital to be invested in the restructuring of financial institutions, his call has been met with resounding interest by various parties. Dozens of private companies, including e-commerce behemoths Tencent and Alibaba Group and even home appliance retail giants Suning and Gree, have already applied for a license or are in the process of applying for one.
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Categories: Capital & Strategic Issues
, Private Banking
, Retail Banking
, Risk and Regulation
, China Minsheng Bank