City lenders explore new ground
Smaller mainland players want approval to go into lease financing and funds management
Some local mainland banks are trying to get an edge over the country's Big Four state lenders by expanding into non-banking businesses that are relatively new to the domestic players.
At least eight city commercial banks were working together to draft plans to lobby the mainland's banking regulator to allow them to set up lease financing companies, state media reported.
Industry watchers say the banks are ambitious but face obvious challenges.
The eight banks named in a recent report by the Shanghai-based newspaper China Business News included Bank of Hebei, Longjiang Bank and Hangzhou City Commercial Bank.
Meanwhile, Bank of Beijing and Bank of Shanghai, the two leading players among more than 100 city commercial banks on the mainland, were also planning to set up fund management companies before the end of the year, the newspaper said, citing unnamed sources.
The Big Four banks, all headquartered in Beijing, include Industrial and Commercial Bank of China, the world's biggest bank by market value.
They have all been expanding into non-banking businesses such as funds management and insurance, often through joint ventures with foreign partners.