The 21st Century Business Herald reported that Chongqing Fumin Bank had got official approval from the CBRC to establish its private banking business on the afternoon of May 18. It is the first of the 12 privately-owned banks under review to have been licensed. This signals licensing to the second wave of privately-owned banks has officially started.
In a announcement made in April 6 by 03903.HK, the chief initiator, revealed that it planned to sign the initiator agreement with the other 6 initiators concerning the establishment of Chongqing Fumin Bank Co.,Ltd. The 6 initiators are engaged in a wide scope of business, including but not limited to motorcycle and relevant spare part manufacturing, pharmaceutical, precision parts, auto manufacturing, catering, development of computer software and hardware, etc.
According to 21st Century Business Herald, Chongqing Fumin Bank Co.,Ltd will be initiated jointly by 7 private enterprises like 03903.HK, Zongshen Industrial Group, Fuan Pharmaceutical (Group) Co., Ltd, Chongqing Yujiang Die Casting Co., Ltd, and so on.
Relevant information shows that Chongqing Fumin Bank Co.,Ltd features a total registered capital of RMB 3 billion. According to exclusive news from 21st Century Business Herald, 03903.HK plans to contributed 30% capitals, Zongshen Group 28%, Fuan Pharmaceutical 16%, Yujiang Die Casting 13%, and the rest 3 ones 13% with each unexceptionally no more than 10%.
The approval reveals that Chongqing Fumin Bank defines itself as “inclusive financial bank aimed at small and micro businesses”, with the business mode of “supporting micro business entrepreneurship, integrating offline and online business, basing on Liangjiang New Area and radiating to the Reservoir Area. It is the first of its kind in Chongqing to serve mainly small and micro businesses, economic entities related to the rural, agriculture and farmers, and other financially vulnerable group. It will give supports and services to “public entrepreneurship and innovation”.
In addition, the 21st Century Business Herald knows that, except Chongqing Fumin Bank, other private banks will be also licensed soon.
Some market participants told reporters of the 21st Century Business Herald that there would be a huge demand for talents to establish the executive team following the licensing to the second wave of private banks. Therefore, there will be flow of professionals from traditional financial institutions to such privately-owned banks.