“The Bank received the approval in relation to the preparation of CITIC Baixin Bank Corporation Ltd..from China Banking Regulatory Commission, which gave its consent for the bank to prepare the establishment of CITIC Baixin Bank Corporation Ltd in Beijing,” China Citic Bank said in a statement on Thursday.
Baixin Bank, will be the first direct bank operating as an independent legal entity in China. The bank will not have any brick-and-mortar outlets, and will operate in the form of online banking, telephone banking, ATM and mobile banking, as per a China Money Network report.
Baixin Bank will be set up with a registered capital of $290 million. China Citic Bank will hold 70 per cent stake in the bank, while Fujian Baidu Borui Internet Technology Co Ltd will own the remaining 30 per cent.
“The Bank and Fujian Baidu Bo Rui Netcom Science and Technology Co., Ltd. respectively subscribe, as promoters, 1,400,000,000 ordinary shares and 600,000,000 ordinary shares of Baxin Bank, constituting, respectively, 70% and 30% of the subscribed capital. Baixin Bank will not engage in financial services during the preparation period,” the statement added.
With the regulator’s approval, Baidu has joined the league of Internet giants Tencent Holdings Ltd. and Alibaba Group Holding Ltd. that are already operating in the direct bank space in the country.