Regulator Mulls Paving the Way for Private Banks

(Beijing) – It has been two months since the State Council said the government will explore the establishment of private banks invested by private capital and bearing risks themselves.

The move is widely viewed as real progress toward opening the financial industry to private investors because though non-state companies have been allowed to be the controlling shareholder of a bank, they do not manage the bank's operations independently enough to be considered running a business at their own risk.