Urban commercial bank

An urban commercial bank (Chinese: 城市商业银行; pinyin: Chéngshì Shāngyè Yínháng) or city-based commercial bank refers to a type of bank in China operating locally with significant shares from the local government. Founded as urban credit cooperatives in 1980s, it aimed to provide funds for local small and medium-sized enterprises and stimulate local economy.

There are currently 162 urban commercial banks operating across China.[1] In 2017, the total assets and liabilities of all urban commercial banks combined was 31721.7 billion yuan, making up 12.70% of all Chinese banks.[2] Typical examples include Bank of Beijing, Bank of Shanghai and Bank of Jiangsu.[3]

History

The first urban commercial bank was Shenzhen City Commercial Bank in 1995. In 1998, the central bank of China, People's Bank of China, advocated urban credit cooperative to change their names into urban commercial banks.

Most city commercial banks have strong ties to their local government and are majority or wholly state owned. Since 2005 some city commercial banks diversify their shareholders, inviting Chinese and international private companies to take minority shares, merging and cross-shareholding. Some of the banks have listed their shares.

Since 2008, an observable trend has emerged for city commercial banks to extend business beyond their home region. They are also often the main shareholder behind village and township banks (VTB). Taizhou City Commercial Bank, Bank of Beijing, Bank of Tianjin and Bank of Ningbo are examples for city commercial banks operating in such ways.

Notable urban commercial banks
Name Chinese Headquarters
Bank of Beijing 北京银行 Beijing
Bank of Shanghai 上海银行 Shanghai
Bank of Jiangsu 江苏银行 Jiangsu
Bank of Ningbo 宁波银行 Ningbo
Shengjing Bank 盛京银行 Shenyang
Huishang Bank 徽商银行 Hefei
Bank of Hangzhou 杭州银行 Hangzhou
Bank of Tianjin 天津银行 Tianjin
Harbin Bank 哈尔滨银行 Harbin
Xiamen International Bank 厦门国际银行 Xiamen

References
  1. "国内银行业金融机构". cbrc.gov.cn. Retrieved 12 February 2019.
  2. "2018年中国城市商业银行发展现状及改革趋势分析【图】". chyxx.com. Retrieved 12 February 2019.
  3. "2018上半年中国城市商业银行排行". enet.com.cn. Retrieved 12 February 2019.
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