China plans to create five new private banks in an effort to crack down on shadow banks, by opening up the financial sector and increasing competition.
The new banks will be overseen by China's banking authorities during an initial trial phase.
China's state news agency, Xinhua, quotes the China Banking Regulatory Commission (CBRC) as saying,
The rise of the shadowing banking industry led to concerns of a surge in debt levels and hidden credit.
The new banks will be overseen by China's banking authorities during an initial trial phase.
China's state news agency, Xinhua, quotes the China Banking Regulatory Commission (CBRC) as saying,
"Strict procedures and standards will be set for the pilots, with demanding set-up criteria, limited licenses, enhanced supervision and a risk handling system."
The rise of the shadowing banking industry led to concerns of a surge in debt levels and hidden credit.