China's long-awaited postal savings bank will be established soon, ending a seven-year controversy, reports Friday's China Securities Journal.

Xie Ping, General Manager of the Central Huijin Investment Corporation, was quoted as saying on Thursday that a decision has already been made on the matter.

Central Huijin holds controlling shares in three of China's "big four" state commercial banks on behalf of the government, namely the Bank of China, the Industrial and Commercial Bank of China and the China Construction Bank.

China Post began its postal savings services in 1986 with the establishment of the China Post Savings and Remittance Bureau (CPSRB).

By the end of 2005, CPSRB had a deposit balance of 1.3 trillion yuan (about 160 billion U.S. dollars), making it the fifth biggest savings institution just after the "big four".

CPSRB takes deposits from the public but can only lend to the central bank, which has been its major source of profits, amid the dwindling of its traditional services.

Efforts to set up the postal savings bank have never ceased since 1997, when it was first proposed by the central bank.

The Chinese State Council finally approved the establishment of the postal savings bank in July 2005, when it decided that China Post will be split into three parts: a post regulatory body, a postal service company and a postal savings bank.

Source: Xinhua