China says to curb risks, pace of setting up private banks

[BEIJING] China will encourage qualified private investors to establish smaller banks but will control risks and the pace of establishment of new private banks, the country's banking regulator said on Friday.

Domestic, state-owned and overseas investors will be treated equally in the process, the China Banking Regulatory Commission (CBRC), said in a statement posted on the central government's website.

China's banking regulator last year approved five private banks to launch operations, as part of a pilot scheme to channel more loans to small businesses, which continue to struggle to obtain loans.

REUTERS