CDB in transformation of commercial bank

China Development Bank (CDB), one of the country's three policy lenders, is engaged in transforming into a commercial bank in the future, said Liu Kegu, vice-governor of the bank.

Liu said CDB cannot turn into a commercial bank immediately as it does not accept individual deposits now, but it is planning to offer the service now.

CDB, the same as before, will mainly serve medium- and long-term national development strategies even after it becomes a commercial bank, Liu said, adding that it will retain its long-term credit business and the right to issue financial bonds in the interbank market.

Earlier report said CDB was planning to invest RMB 7 billion (US$985.9 million) to buy a 90% stake in Shenzhen Financial Leasing Co Ltd, looking to diversify its business.

Currently, CDB has the best asset quality among domestic banks, with a less-than-1% non-performing loan ratio - much lower than that of major commercial banks.