In addition, with regard to commercial banks, their provincial branches and branches located in provincial capital cities will be consolidated gradually and the grassroots branches with overlapped businesses with their counterparts that have incurred sustained losses will be removed.
When conditions allow, urban commercial banks will be created in 300 city centres with equity shares from local fiscal authorities with a view to establishing a multi-layered financial system comprising different financial institutions. The underlying nature of financial institutions requires the existence of a set of rules and regulations for the management of the institutions.