Private bank is to  manage the assets of rich people or high net worth individuals,which owned and operated for profit by a very powerful group of elite international bankers.

Nowadays ,Chinese private firms have rushed to apply to set up private banks, under government regulations designed to open up the much-hyped market. But the nascent sector still has a long way to go before better serving the real economy and facilitating financial reform.Over 20 listed private companies on China’s A share market have so far tried or showed interest in establishing private banks, causing related shares to surge for a string of days.( CHINA DAILY NEWS\)

With the rapid rise of Chinese economy, a rapidly growing number of rich people in China, and highly concentrated wealth,the development of private banks is rising urgently.It believes they can aid cash-strapped small businesses and mitigate financial risks.

The boom in Internet finance may well pave the way for private capital to enter the banking sector.However, private capital should stay alert to risks when entering the banking sector as bankruptcy may risk a spillover that could have an impact on the economy.

Excitement and volatility are nothing new to an emerging market. Private banks may have a chance to develop to a boom today; the emerging markets may not stay the way they are. Although emerging market economies such as China, India, Chile and Indonesia have solved the problem of backwardness; they are exploiting their labor advantage and growing much faster than the U.S. In practice, private investors must be able to handle risks.