On Oct. 17, “Jinling Bank Co., Ltd.”, jointly established by the Sanpower Group Co., Ltd. and Yurun Group Co., Ltd. has obtained name pre-approval from the State Administration for Industry and Commerce. With this, there are greater possibilities for the realization of greater private capital investment in the banking industry.

In recent years, China has consistently encouraged private capital to step into the banking industry. On July 5 of this year, in the document "Guiding Opinions on Financial Support for Economic Structure Adjustment, Transformation and Upgrades", the General Office of State Council promulgated the idea that, “We shall expand private capital in the financial industry, encourage investment and participation in financial institution reorganization & reconstruction of private capital, and test the establishment of financial institutions with private capital at its own risk. These include private banks, financial leasing companies, consumer financial companies, and others.” This document has green lighted private banks, and also signifies that there are more posibilities for private capital to step into the financial industry. Compared with rural banks and township banks, private banks can exert more functions in terms of integrating financial resources, supporting development of small- and micro-sized enterprises, meeting the demand of individuals’ financing, and strengthening credit support in the fields of “agriculture, farmer, and countryside”.