Banking News
- Jiangsu Bank set to open this month
Date: 12-Dec-2006 Sources: (Shenzhen Daily)
JIANGSU Bank, created in China's drive to strengthen its banking sector through mergers, will start operating this month and may attract strong interest among potential foreign investors, industry sources said yesterday.
The bank was formed by the merger of 10 small city commercial banks and urban credit cooperatives in the eastern province of Jiangsu, said an official at the China Banking Regulatory Commission's (CBRC) Jiangsu branch.
'Everything has been prepared and Dec. 28 will be the date on which Jiangsu Bank opens for business,'said the official, who declined to be identified before the official announcement.
The new bank, headquartered in the provincial capital of Nanjing, has 130 billion yuan (US$16.6 billion) of assets, making it a relatively small member of the second tier of domestic banks.
But it is located in one of the richest provinces in China: Jiangsu has 6 percent of the country's 1.3 billion population but contributes around 10 percent of its economic output.
Foreign investors are not expected to be allowed to buy stakes in the bank during its initial months, but as in the case of other financial institutions under restructuring, foreign capital and expertise may well be sought eventually, the sources said.
'The regulators think it would not be good timing to get foreign investors at present. But we all know this will happen sooner or later, so I believe the bank will attract foreign scrutiny from its first day,'said a Shanghai-based banker.
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