Post split approved in China
China’s cabinet has approved a plan to reorganize the State Post Bureau by splitting off its banking component and creating one of the nation’s largest lenders, according to a banking regulator. The new bank, called the China Post Savings Bank, will specialize in ”retail banking and intermediary services and serve the local community and rural areas with its extensive network,” Cai Esheng, vice chairman of China Banking Regulatory Commission, said on Tuesday.
China’s government is trying to split commercial businesses from government bodies to prevent corruption and fraud, as the nation fully opens its financial markets to overseas investors by the end of this year. China Post currently collects and delivers mail, takes deposits, issues stamps, sells policies for insurance companies and handles bill payments.
