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China to allow creation of 5 privately financed banks this year as part of reform effort
Reported by: Associated Press
Reported: Tuesday, January 7, 2014 2:45 AM EST
China's bank regulator says it will allow the creation of as many as five privately financed banks this year as part of reforms to open the state-controlled industry and support economic growth.
Regulators promised last year to allow privately financed banks as part of reforms aimed at making China's economy more productive. The state-owned banking industry lends mostly to government companies, and reform advocates say it has to do more to support credit-starved entrepreneurs who create most of China's new jobs and wealth.
The regulatory agency gave no details about what areas of banking private banks will be allowed to operate in.