The China Banking and Regulatory Commission has given its approval to internet firm Tencent’s proposal to commence banking operations.
The launch of Tencent’s private bank will open up the country’s banking sector, which has been dominated by state-controlled giants, reports Reuters.
The banking regulator, so far, has approved over ten private lenders in Tianjin, Shanghai, Zhejiang as well as Guangdong.
This is a bid to channelize more loans to the small firms, which are facing cash crunch.
According to the China Banking and Regulatory Commission, Tencent-funded AShenzhen Qianhai Weizhong Bank, Shenzhen Baiyeyuan Investment and Shenzhen Liye Group have a registered capital of CNY3bn ($485m).
Tencent’s subsidiaries are into mass media, entertainment, internet and mobile phone value-added services, and online advertising services.
The China Banking Regulatory Commission (CBRC) is an agency of the People’s Republic of China (PRC) authorized to regulate the banking sector of the PRC except the territories of Hong Kong and Macau.
Image: Tencent headquarters in Nanshan District, Shenzhen. Photo: courtesy of JHH755