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First private bank in China's rust belt starts operation

Updated: 2017-05-17
(Xinhua)

CHANGCHUN - The first private bank in China's rust belt, an industrial area in the northeast, went into operation Tuesday.

Headquartered in Jilin, one of the three northeastern provinces, Yillion Bank was approved in December 2016 by China's banking regulator and was co-sponsored by at least two private capital providers.

The lender mainly attracts deposits from personal consumers and provides financial support to small and micro firms.

"The bank is expected to promote the development of the local private economy, and plays a positive role in rejuvenating the region's economy," said Miao Zhongyou, deputy director of Jilin Province Finance Office.

Over the past two years, the economy of northeast China, which also includes Heilongjiang and Liaoning provinces, has grown more slowly than the rest of the country.

In 2014, China approved a pilot scheme to set up five private banks to give private capital a bigger role in the country's financial system. Nationwide, the number of private banks has reached 17, with nine of them having gone into operation.

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