The National Financial Regulatory Administration’s Shanghai branch announced on Friday that it approved the adjustment of shareholder ratios, allowing Shanghai Pudong Development Bank (SPD) to acquire 100% ownership of its joint venture with Silicon Valley Bank (SVB). The venture will be renamed Shanghai Innovation Bank, and its registered capital will be reduced from 2 billion yuan to 1 billion yuan ($141 million).
SVB’s collapse last year, one of the largest in U.S. banking history, left its joint venture, SPD Silicon Valley, in a precarious position with no buyers for SVB’s stake. The approval allows SPD to consolidate its ownership fully, turning the joint venture into a wholly-owned unit and enabling a fresh start under the new name, Shanghai Innovation Bank.