Arab Today, arab today bank opens path to stock sale
Last Updated : GMT 14:00:14
Arab Today, arab today
Arab Today, arab today

Bank opens path to stock sale

Arab Today, arab today

Arab Today, arab today Bank opens path to stock sale

Beijing - XINHUA

he Postal Savings Bank of China Co Ltd, a commercial bank in China serving small business owners, said on Monday that it has finished a joint-stock restructuring and paved the way for a sale of shares to the public. The bank, which has the reputation of being the \"Chinese Wells Fargo\", is a subsidiary of the State-owned China Post Group Corp, the country\'s biggest postal company. China Post Group Corp is already trying to raise capital for another of its subsidiaries. The delivery company China Postal Express & Logistics Co Ltd recently filed for a listing with the China Securities Regulatory Commission and passed the commission\'s first round of examinations. It is likely to float its shares soon. Analysts say completing the restructuring will bring Postal Savings Bank of China, the country\'s sixth largest lender measured by asset values, a step closer to listing its shares on the stock market. That, they said, makes it likely the company will file a listing application in the \"foreseeable future\". Jin Lin, a banking industry analyst with the Shanghai-based Orient Securities Co Ltd, said it is completely possible the bank will go public, noting that China Development Bank, another State-owned institution, has talked about floating shares. The Postal Savings Bank of China, once restructured, will take over all of its former self\'s assets, liabilities and personnel and will not trouble depositors by requiring them to follow new procedures, the bank said in a statement posted on its official website. The new entity has 45 billion yuan ($7.1 billion) in registered capital. The restructuring is coming after the bank saw its loans increase and its capital adequacy ratio - the ratio of the bank\'s capital to its weighted risks - drop below the minimum level mandated by regulators. The bank\'s capital adequacy ratio stood at 8.37 percent at the end of 2010, about 2 percentage points lower than the requirement of 10.5 percent. The Postal Savings Bank hasn\'t published its ratio for 2011 yet. In June 2011, the bank announced plans to hold its first auction of subordinate bonds, planning to sell up to 16 billion yuan in bonds in an attempt at replenishing its capital. The bank is required to have a fairly high capital adequacy ratio because it conducts most of its business in rural areas, where risks are often fairly high. The bank\'s loan balance to small businesses reached 749.3 billion yuan by the end of October 2011. \"Floating shares is the best way for the Postal Savings Bank of China to replenish its capital,\" said Guo Tianyong, head of the banking industry research center at the Central University of Finance and Economics in Beijing. China National Radio reported that many investors, including JP Morgan Chase & Co, have spoken to the bank about making investments. The Postal Savings Bank\'s low loan-to-deposit ratio gives it great potential to expand. The China Banking Regulatory Commission requires lenders to maintain a loan-to-deposit ratio - the amount of outstanding loans a bank has compared with its deposits - of less than 75 percent. While many lenders have been struggling to meet the requirement, the Postal Savings Bank has a ratio of about 20 percent, meaning it has a large amount of leeway to make new loans. The bank has about 3 trillion yuan in deposits but is only allowed to make small loans, mostly to support rural development. \"The bank has a great deal of potential since it has a lot of money to be loaned out,\" said Jin Lin, the Shanghai-based analyst.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bank opens path to stock sale Arab Today, arab today bank opens path to stock sale

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom, China plunges into snow biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom, China plunges into snow biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday