CBRC to expand private investment in banks

The China Banking Regulatory Commission (CBRC) said that it would expand channels for private investment into China’s banking sector, state media reported. The regulator particularly hopes to encourage private capital to invest in rural financial institutions, though any potential investor – whether an individual or an enterprise – would have to meet the requirements of being “high-quality” enterprises or individuals “with solid [financial] standing,” a good credit record and a long-term ability to replenish capital. Current rules restrict enterprises and individuals to hold shares in no more than two banks, with a controlling interest in no more than one bank. These investments are subject to five-year lock-up periods.