The Bank of Tianjin, formerly known as Tianjin City Commercial Bank, announced it has received approval from the China Banking Regulatory Commission, China’s banking watchdog, to open a branch in Shanghai, its third outside Tianjin.
One of the largest city commercial banks in China, Bank of Tianjin, with 69 main branches and a total of 184 banking locations, has made an impressive performance in recent years. Its expansion into Shanghai shows its determination to strengthen the Bank’s financial position and has strong support from governments in Tianjin and Beijing.
The bank, headquartered in the northern Chinese municipality of the same name, was established in 1996 under the name Tianjin City Commercial Bank. In 2007, it was approved by the China Banking Regulatory Commission (CBRC) to be renamed Tianjin Bank and operate trans-regionally, making it possible for the bank to grow from a local bank to a national share holding one. The name change was a key part of the bank’s new image, designed to reflect its significant position in Tianjin and its regional growth plans.
In 2006, the Bank of Tianjin teamed up with Australia & New Zealand Banking Group Ltd, which invested US$111.5 million to take a 20% stake in the bank. China's more than 110 city commercial banks are less competitive than bigger banks (including Bank of China Co) because they have less funds and are restricted in where they can operate. The central government has been prodding banks to sell stakes to the public, including overseas strategic investors, to help them boost capital and improve management.
