Banks get green light on insurance

China's banking regulator will allow banks to establish and directly invest in insurance businesses, and also support local insurance funds taking stakes in commercial banks, the Wall Street Journal reported. China Banking Regulatory Commission chairman Liu Mingkang said regulations for bank cards, fund management by commercial banks, trust management and asset-backed securitization would also be introduced. The regulator hopes to encourage commercial banks to expand services and thus improve their competitiveness ahead of the opening of the banking sector to foreign competition in December.