Banking regulator encourages growth of consumer lending

China's banking regulator will encourage the launching of more consumer finance companies while helping them improve comprehensive risk management.

For example, with registered capital of 300 million yuan ($43 million), Baotou Baoyin Consumer Finance Co Ltd opened for business on Dec 29 in Baotou, the Inner Mongolia autonomous region. Baoshang Bank Co Ltd, a Baotou-based mid-sized commercial lender, was among the company's three founders, holding 73.6 percent of the stake.

Liu Xin, chairman of the company, said it aims to become an online consumer financial services provider for the younger generation, offering products for various scenarios.