Jan. 10, 2007 (China Knowledge) – China Development Bank (CDB), one of the policy banks of the nation, may be turned into a commercial bank after the government separates its policy and commercial businesses.

Should the CDB be turned into a commercial bank, it would have the best asset quality in China.

According to Xinhua news agency, the CDB had in the beginning of 2006 a registered capital of RMB 50 billion, a total asset of RMB 1.9 trillion, a net profit of RMB 22.8 billion, and a non-performing loan ratio of as low as 0.96%.

In addition to CDB, the other two policy banks, the Export and Import Bank of China and the Agricultural Development Bank of China, will also undergo reforms but under different policies due to their different financial conditions.

The Chinese government may also turn another policy financial institution, China Export & Credit Insurance Corp. (CECIC), into a commercial insurer, according to a report on Monday's China Securities Journal.