Tang Shuangning, Vice Director of the China Banking Regulatory Commission (CBRC) said at the recently-held 8th Financial Forum of National and Local Financial Service Providers, that the CBRC encourages urban commercial banks to forge partnerships with overseas strategic investors. By realigning their existing resources as well as merging and regrouping in accordance with market rules on a voluntary basis, urban commercial banks will hopefully improve their overall level of development and competitiveness.
Tang said, as reform was pressed ahead in China’s banking sector, the competition in the same area also became more intense. Urban commercial banks are large in number and concentrated in certain localities, however, the capital within their maneuver is relatively limited. So they are facing greater pressure in finding a place in the marketplace. Many such banks have laid out expansion plans both in terms of scope and geographically. In response, the CBRC, based on thorough study, has come up with related policies and standards. All urban commercial banks should select appropriate modes for development in light of the status quo of their business strengthen and regional economic development. They should approach restructuring and regrouping through asset swapping and investment increment and by forging partnership with overseas strategic investors so as to ward off future risks and strengthen their growth capacity.
Talks with banks already concluded>stay tuned
