Samsung Electronics said it is setting up a bank. The new bank will be named China Samsung Finance Corporation. The South Korean electronics behemoth wants to efficiently manage the capital of local subsidiaries and subcontractors in China and it believes a bank of its own is the solution. This is the first case for domestic industrial capital to solely establish a financial company in mainland China. The company will be requiring approval from the China Banking Regulatory Commission (CBRC). The group has already sought permission from CBRC to set up the banking entity. In Korea there are strict restrictions on the combination of industrial capital and financial capital, but in China companies can establish a financial corporation that extends and receives credit if it obtains permission from the financial authorities. It is believed that once Samsung Electronics completes the foundation of the China Samsung Finance Corporation, it will be able to manage the capital of its 28 affiliated corporations in China more efficiently.
