The Bank of Beijing announced it plans to set up a joint venture with Netherlands-based ING Bank NV with the latter holding the majority stake.

Total investment for the joint venture bank will be 3 billion yuan (US$ 448 million), in which the Dutch lender will hold 51% and the Beijing Bank will hold a 49% stake, the Securities Times reported, citing information provided by Bank of Beijing.

It could become China’s first commercial lender in which a foreign shareholder has a controlling interest, the report said. The Bank of Beijing has got the necessary board approval and pending regulatory approval for the deal.

Drawing on the experience of ING Bank in the successful development of direct banking services, the joint venture will build a brand in the area of digital banking with the help of financial technologies and try to become a benchmark in terms of the implementation of China’s push to further open up its financial sector to foreign investors, according to another China Daily report.

ING Bank started a strategic alliance with Bank of Beijing in 2005 by acquiring a minority holding. As the largest single shareholder, ING Bank held a 13.03% stake in the Beijing-based commercial lender as of September 30, 2018.