Jan. 12, 2007 (China Knowledge) – Bank of Jiangsu, which was finally approved last year by the China Banking Regulatory Commission (CBRC) after years of discussion and preparation, will be open for business later this month.

With a registered capital of RMB 7.85 billion, Bank of Jiangsu is a consolidation of 10 small city commercial banks in Jiangsu Province in eastern China. During the merger, the new bank reportedly cleared a total of RMB 2.54 billion in bad assets and raised RMB 3.5 billion by issuing more shares.

The consolidation is seen as a step by the 10 small city commercial banks to gain more capital and market share in face of increasing competition from both domestic and foreign rivals following the full opening of the banking sector last month.