The headquarters of China's central bank, the People's Bank of China (PBC). (Photo : Reuters)
During an intensive period for China's banking sector, Wang Zhaoxing, vice chairman of the China Banking Regulatory Commission (CBRC), confirmed active and steady support for China's fledgling private banking sector on Friday.
Wang, speaking at a State Council Information Office policy briefing meeting, explained that the results from completed trials have provided the government with confidence to proceed.
The vice chairman also stated that the CBRC will "establish a prudent supervision mechanism for risk control and corporate management, targeting private banks in order to ensure growth on a healthy path."
Friday's announcement follows the commission's approval of five private banks during the third quarter of 2014, including Shenzhen's online WeBank. Last year's decisions were made in the interests of the country's small and micro-businesses.
At the time that the online WeBank commenced its trial period this week, it did not operate any physical locations, and its launch is part of an overall aspiration to reduce China's reliance on offline banking transactions. China's gaming giant, Tencent Holdings, currently holds a 30-percent share in the new Web-based entity, which displays a registered capital of 3 billion yuan on its home page.
Prior to 2014, only one private bank operated in China. Minsheng Bank, a national bank founded in China's capital city in 1996, is listed in both Shanghai and Hong Kong.
Also on Friday, Wang stated that China is tightening control on shadow banks and local government debt, while the ongoing Western sanctions on Russia will not impact bilateral trade or the relations between China and Russia.
