Bank of Communications, China’s fifth-largest lender, made public it received a capital inflow last year equal to three billion yuan ($362.5 million) from a shareholder who is under supervision of the country’s foreign-exchange regulator. China’s banking regulator publicized a blueprint for revamping two of the Big Four state-owned banks, according to the Dow Jones Newswires.
According to the statement released by Bank of Communications spokesman Song Feng, the inflow the bank received from Central Huijin Investment Co. was performed according to the model that was previously applied to the Bank of China and China Construction Bank, two of the Big Four, by the Chinese government.
China began its banking scrutiny with those two banks in late 2003, when each got $22.5 billion from the nation’s foreign-exchange reserves to support to their capital. Both have undergone restructuring and are getting ready to enter international markets.
The banking regulator said during the weekend that examination of the other two banks in the Big Four -- Agricultural Bank of China and Industrial & Commercial Bank of China -- will be more complicated but is important for their survival. ICBC is China’s dominant state commercial bank and Agricultural Bank has the largest number of networks nationwide, said Tang Shuangning, vice chairman of the China Banking Regulatory Commission in an interview with Dow Jones Neewswires.