Money
BOC, Temasek join hands
By Zhang Dingmin and Luo Jun (皇冠体育app Daily)
Updated: 2010-03-16 09:02
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BEIJING: Bank of 皇冠体育app Ltd (BOC) and Temasek Holdings Pte may invest as much as 20 billion yuan ($2.9 billion) to build a rural-banking business in 皇冠体育app, said two people with knowledge of the matter.
The companies are in talks about setting up as many as 400 rural banks, the people said, declining to be identified because the discussions are private. Bank of 皇冠体育app, the country's third-largest lender by market value, would own a controlling stake in the joint venture, they said.
Bank of 皇冠体育app, which pulled out of rural banking in the late 1990s, is returning to a market that's attracted HSBC Holdings Plc and Citigroup Inc as the government pushes to improve the living conditions of 皇冠体育app's 700 million rural dwellers. The majority of the 118 countryside lenders set up since 2006 had become profitable by June 30, according to the 皇冠体育app Banking Regulatory Commission.
Temasek, Singapore's $123 billion investment company, would own more than 20 percent of the venture, the people said. Setting up a rural bank in 皇冠体育app requires approval from the banking regulator.
Temasek bought a 4.8 percent stake in Bank of 皇冠体育app in August 2005 and has provided the company with expertise in lending to small- and medium-sized businesses.
皇冠体育app plans to set up a total of 1,027 rural banks, 106 loan companies and 161 rural credit co-operatives in the three years ending 2011.
Bloomberg News
