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Beijing News: State Council Considers Allowing Private Banks

Beijing News recently reported that the State Council announced a series of new policies at its latest executive meeting. One decision was the policy that the central government will no longer require approval for 32 counts of earlier restricted activities such as non-stop direct railway passenger and cargo transportation plans, or a change in the registration of publishing businesses. The goal is to promote fewer government regulations in market-based operations. One key focal point of the discussion at the meeting was the intent to allow the creation of private banks. The meeting recognized that the Chinese market has a significant lack of competition in the banking sector. Meanwhile, small businesses, private companies, as well as agricultural areas suffer a serious lack of lenders. The large state-owned banks are typically not interested in lending money to the businesses other than state-owned companies, which often enjoy fewer risks and a higher profit margin due to government endorsement. 
Source: Beijing News, June 20, 2013