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SHANGHAI (Reuters) - China will expand a trial programme next year to allow the creation of purely private banks and ease the entry of private capital into the banking sector, China Banking Regulatory Commission (CBRC) chairman Shang Fulin was quoted saying in state media.
The official China Securities Journal on Wednesday reported Shang saying at a meeting that the CBRC would add new channels next year by which private capital could invest in banking, including expanding the scope of pilot programmes for private banks and consumer financing companies.
Shang's remarks follow a series of public commitments to increasing private capital participation in the financial sector to improve efficiency and reduce the central government's effective liability for bad debts at state banks.
The recent stock market rally has already channelled new funds from individual and institutional investors into banking shares, which have outperformed benchmarks after being neglected for years.
(Reporting by Pete Sweeney; Editing by Eric Meijer)