Bank Rivals Emerge

Several independent financial centers set up in Shanghai during the past year may eventually overshadow official banks, according to the official New China News Agency (Xinhua).

The financial centers, set up to supplement state-run banks and diversify the banking industry, pay a higher interest rate on deposits and provide low-interest loans. Because of this, experts believe they will eventually overshadow official banks, Xinhua said.

The centers have even made loans to official banks, Xinhua said.

“Experts who advocate a reform in the financial system predict that the establishment of these centers will lead to a unification of financial and industrial capitals,” Xinhua said.