Another one of China’s rural banks has unveiled plans to launch its own consumer finance subsidiary.
Jiangyin Rural Commercial Bank (江阴银行) announced on 24 April that its board of directors had approved a resolution for the establishment of a consumer finance company and a financial leasing company.
Sources from the Jiangsu-based lender said to National Business Daily that senior management already mooted plans to launch consumer finance and financial leasing subsidiaries in 2019, and that these plans are currently contingent upon shareholder and regulatory approvals.
China is at present host to a total of 25 licensed consumer finance companies and 70 financial leasing companies.
Multiple rural commercial lenders are currently planning or preparing to launch their own consumer finance companies, including Chongqing Rural Commercial Bank, Shanghai Rural Commercial Bank and Suzhou Rural Commercial Bank.