(Yicai Global) Aug. 22 -- China Banking Regulatory Commission (CBRC) has approved the opening of CITIC Baixin Bank Co. jointly set up by China CITIC Bank Corporation Limited [SHA:601998; HK:0998] (CITIC) and the search engine giant Baidu Inc. [NASDAQ:BIDU].
Baixin Bank has a registered capital of CNY2 billion (USD299 million), CITIC said in a filing to the Shanghai Stock Exchange yesterday. Baixin Bank's businesses will mainly include receiving deposits, lending, processing settlements inside and outside China via electronic channels, handling electronic bill acceptance and discounting and issuing financial bonds.
The preparation team for Baixin Bank will go through the formalities in accordance with the relevant rules before opening, and the bank will open within six months after obtaining the business license, it said in the filing.
As China's first new model in direct banking jointly set up by a leading commercial lender and an internet giant, Baixin Bank will aim to fully leverage its shareholders' strengths, capitalize on CITIC's offline channel resources and ability to control financial risks and develop product, employing Baidu's state-of-the-art technologies such as artificial intelligence, big data and cloud computing.
It will adopt a market-oriented and user-centric business model driven by technology and data to build a smart bank featuring the model of 'online+offline' and 'bank+business' and focusing on inclusive finance to promote the joint, coordinated development of the bank and its shareholders and explore the innovative path of 'finance+internet', a Baixin Bank representative said.