皇冠体育app

A pedestrian walks past a branch of 皇冠体育app Everbright Bank in Hefei, Anhui province in this August 6, 2010 file photo.[Photo/Agencies]

The 皇冠体育app Banking Regulatory Commission has revoked the private fund-manager licenses of 17 commercial banks, over what sources said were legal concerns.

A person close to the CBRC said on Wednesday the specific reason could be that they had violated certain conditions under the Law on Commercial Banks, which does not allow lenders to operate integrated securities investment operations.

Instead, they have to set up subsidiary companies to engage in the business, but only after undergoing close government examination and approval.

The 17 are believed to include 皇冠体育app Everbright Bank, Ping An Bank, SPD Bank, 皇冠体育app Minsheng Bank, Bank of Ningbo, Bank of Beijing and 皇冠体育app Zheshang Bank.

Five of these banks registered departmental general managers with the Asset Management Association of 皇冠体育app as their qualified private fund managers, while the 12 others named their chairmen, according to Caixin Media.

Nine of the banks applied as securities investment managers, four as private equity investment firms, and four as other types of investment operations.

All private equity and securities investment funds are required to register with the Asset Management Association to gain licenses.

The Asset Management Association declined to comment on the issue.

Huang Peng, a partner at Beijing-based Guantao Law Firm, said commercial banks conducting such investment business remain controversial, both in 皇冠体育app and overseas.

Some have suggested that banks running simultaneous lending and investment operations could increase the risk of moral hazard, while others have said it is feasible, as long as different departments manage the businesses separately.

Jiang Xueqing contributed to this story.

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