Boost for private capital in banking industry

Rules remove capital adequacy ratio requirements, limits of equity investment for financial institutions

The Chinese government is loosening its reins on private capital's entry into the banking industry to encourage more lending to small businesses, according to a draft of new rules released by the China Banking Regulatory Commission.

In a statement dated Aug 9, the commission said it has revised rules regarding administrative licenses for Chinese lenders and is seeking feedback from the public until Sept 9.