Bank of Ningbo yesterday signed a formal strategic cooperative agreement with CITIC Private Equity Funds Management Co., Ltd. and became a listed bank in partnership with a PE. Relevant person responsible with Bank of Ningbo told this cooperation would cover all business links from fundraising, project investment to post-investment management.

　　Insider pointed out that in cooperation with PEs, a bank could not only gain high incomes from intermediary businesses, but also share returns on equity investment with PEs by other means. Through the business innovation, it extends traditional business to the field of equity investment.

　　China's Law of Commercial Banks prevents commercial banks from holding non-business shares directly. Therefore, banks were apt to work together with commercial investment institutions, providing financing services to borrowers in the form of “creditor's rights + equity” to gain equity premiums.