China's banking regulator has formally approved the launch of
the postal savings bank, setting a new stage in the development of
the country's postal savings services.
The launch of the bank is also an important achievement in
China's reform of its banking sector, the China Banking Regulatory
Commission (CBRC) said in a statement on Sunday.
The CBRC said the bank would be wholly owned by the China Post
Group, a US$10 billion stand alone company, recently formed out of
the State Post Bureau.
The establishment of the bank is part of the government's
efforts to develop the rural economy as most of the postal savings
outlets are in the rural areas, industry experts said.
"China Postal Savings Bank will focus on developing retail and
intermediary businesses, to offer basic financial services for
residents in urban and vast rural areas," the CBRC said. "It will
form sound, complementary relations with other commercial banks to
contribute to the development of the new countryside."
According to the CBRC, the bank, after its opening, will set up
a department specially for rural financial services, to further
improve its network and services to farmers, and the agricultural
sector.
The bank will strengthen its cooperation with policy banks and
the rural credit cooperatives to improve the coverage and quality
of rural finance, the CBRC said.
The banking regulator set up a new department in April last year
to oversee the postal savings services and the country's three
policy banks.
The CBRC did not reveal financial details of the new bank in its
statement
China Post started its postal savings services in 1986 with the
establishment of the China Post Savings and Remittance Bureau. But
it could only accept deposits from the public and not offer
loans.
By the end of 2005, it had a deposit balance of 1.3 trillion
yuan (US4166 billion), accounting for nearly 10 percent of China's
household savings and making it the fifth largest savings
institution after the big four State-owned banks.
In 2005, it had more than 36,000 outlets across the country. In
preparation for the creation, China Post began to expand its
services last year with the setting up of a pilot program in
several provinces offering small-scale loans.
(China Daily January 3, 2007)