ACFIC proposes to relax restrictions on foreign investment into private banks

The All-China Federation of Industry and Commerce (ACFIC) proposed to relax the restrictions on the nature of shareholders of private banks and allow foreign investment in private banks.

The All-China Federation of Industry and Commerce (ACFIC) proposed to relax the restrictions on the nature of shareholders of private banks and allow foreign investment in private banks.

Secondly, the government should rationally relax business restrictions and expand the financing channels and sources of funds of private banks.

It said that the development speed of China’s private banks has not reached the industry’s expectations, and its potential to serve small and micro enterprises and the real economy is far from being fully realized.

The reason is that in reality, private capital is still more restricted in terms of fair treatment.

For example, in actual operation, private banks face some invisible thresholds, such as equity ratio, shareholder nature, and business qualification.

These restrictions were necessary at the early stage of the development of private banks, but today China’s financial industry is open to the development of two-way domestic and foreign markets, and adjustments are necessary.

The proposal suggests that, first of all, under the trend of the financial industry opening wider to the outside world, the restrictions on the nature of shareholders of private banks should be relaxed accordingly, and foreign investment should be allowed to invest in private banks.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/05/24/acfic-proposes-to-relax-restrictions-on-foreign-investment-into-private-banks/.

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