--- SEARCH ---
WEATHER
CHINA
INTERNATIONAL
BUSINESS
CULTURE
GOVERNMENT
SCI-TECH
ENVIRONMENT
LIFE
PEOPLE
TRAVEL
WEEKLY REVIEW
Learning Chinese
Learn to Cook Chinese Dishes
Exchange Rates
Hotel Service


Hot Links
China Development Gateway
Chinese Embassies

Official: China's Banking Reforms Strike Balance

China's banking reforms will strike a balance between cutting the bad loan ratio and systematic improvements to ward off financial risks, according to a leading banking regulator.

 

Tang Shuangning, vice-chairman of the China Banking Regulatory Commission, was absolutely correct when he told a recent forum the banking reforms will provide for sound governance in major State banks and the introduction of foreign strategic investors.

 

Corporate governance structural reform is one of the most crucial tasks for State banks, apart from sorting out bad loans and inadequate reserve funds.

 

Inefficient management has contributed to many of the problems currently affecting the State banking industry.

 

The lack of the whole set of board of directors, board of supervisors and general shareholders' meeting in the banks has been the major source of bank managers' slack behavior. Purely administrative measures are not an effective way of rooting out bad management in the banking industry.

 

The bad loan ratio of the major State banks has been on the decline thanks to tougher banking policies introduced in 2000.

 

The average bad loan ratio of the four big State-owned banks was 21.4 per cent in terms of the international five-category asset classification standards by the end of September. The average bad loan ratio of major financial institutions was 18.7 per cent.

 

While being pleased by the encouraging figures, we cannot but wonder whether such administrative regulation alone could maintain the industry's healthy growth. And effective self-regulation would be much better for the industry.

 

(People’s Daily November 15, 2003)

 

Banking Sector Opens up
Think Tank: No Haste for Private Banks
Banking Supervision Law Questioned
Banking Law Reform Complete Within a Year
CBRC Chief on Goals of Good Regulation
PBOC: GovernorBanking Reform to Be at Micro Level
Print This Page
|
Email This Page
About Us SiteMap Feedback
Copyright ©China Internet Information Center. All Rights Reserved
E-mail: webmaster@china.org.cn Tel: 86-10-68326688