Alibaba 'may establish nation's 1st Internet bank'

Alibaba, China's largest e-commerce platform, is looking at establishing the nation's first Internet bank, China Business Journal reported on Monday.

The company is filing a petition to the financial supervision department on the proposed virtual bank, the paper cited unidentified sources as saying.

Registered capital for Alibaba's Internet bank is 1 billion yuan, ($163.5 million), the source noted, providing micro and small financial services including deposits, loans and transfers.

The company's public relations department said they were not aware of the plans when approached by China Daily on Monday.

Internet banks differ from traditional banks most notably in a lack of a bank building and the application of Internet technologies to conduct all business.

Alibaba has embarked on financial endeavors since its rollout of Alipay, the popular online third-party payment system, in 2004. It has extended loans toChina's small businesses, and in June launched a deposit product offering interest rates higher than most banks.