China says private banks possible

China's government has promised sweeping changes to its state-run banking industry, including allowing the creation of private lenders, to support struggling private companies and curb what regulators worry are growing financial risks.
The changes announced today would tighten controls on some bank activities while also increasing lending to credit-starved private businesses.
The new leadership that took power last year has pledged to support entrepreneurs who generate China's new jobs and wealth but have yet to announce detailed policies.
Today's joint statement by the central bank and banking regulators said the government "will make attempts" to allow the creation of privately financed lenders but gave no details or a timetable.