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State okays new postal savings bank
By Zhao Renfeng (China Daily)
Updated: 2005-07-29 06:16

The China Banking Regulatory Commission (CBRC) announced yesterday the greenlight had been given to launch a postal savings bank.

Site of a postal savings office in Zhengzhou, capital of Central China's Henan Province. [newsphoto]
The nation's banking industry regulator said in a statement that it "would actively study concrete plans to launch a postal savings bank and report the plans to the State Council to get its endorsement as soon as possible."

The postal savings service in China has more than 36,000 outlets nationwide and oversees 1.22 trillion yuan (US$150.4 billion) of deposited funds, while maintaining a firm market presence as the provider of basic banking services.

But due to its outdated operating mechanism and delicate relations with the nation's postal system, the service is facing a critical need to reform.

"The reform of the postal savings system has taken a historical step and the setting up of a postal savings bank will begin soon," said the CBRC on its website yesterday.

The announcement came after the State Council finally approved the much-debated reform of China's postal system last Wednesday.

According to the reform plan, the State Postal Bureau, also known as China Post, will have its administrative role split from its postal business functions. The postal savings service, an important part of China Post, will also be reformed accordingly.
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