CDB: an in-depth study that earns interest
- By Zou Lixing
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E-mail China Daily, October 18, 2013
For example, CDB greatly supported the extension of emergency loans such as for earthquake relief, the "going global" strategy performed by enterprises on energy resources, the strategies of Western Development, revitalization of northeast old industrial bases and rise of Central China implemented by the State. It also supported the construction of rural infrastructure, growth of small and medium enterprises, housing for low and medium-income families, financial aid to students and training for migrant workers. In a word, CDB always devotes itself to steady and rapid economic development either in adversities or favorable situations. Therefore, it has become an important means for the government to regulate and control the economy.
The reform and growth of CDB has been closely connected with the reform, opening-up and economic development of China, full of explorations, practices and difficulties. Many bottleneck restrictions are imposed on the market system, infrastructure and social development in China as a transitional economy. In these years, CDB has actively explored and developed the theories and practices on development-oriented finance with Chinese characteristics, to tackle bottleneck problems in economic development, hence achieving outstanding results.
By combining government targets with market mechanisms, development-oriented finance has been proved to be an important tool to solve such bottleneck problems and speed development in China. In the meantime, it is also an important way for China to follow the road to a characteristic socialism market economy. The targets of theories and practices on development-oriented finance are to seek an effective way to combine finance and government, finance and society, finance and economy, and finance and the market, and to boost the overall progress and coordinated development of economy and society by means of mechanism, system and market construction.
The cores lie in system building, institutional improvement, market construction and credit construction, while, the basic features of development-oriented finance theories are innovation, development and finance. Such theories and practices not only aim to deal with the financing problem in the medium and long-term construction, more importantly, they would speed up the construction of system, market and credit, bring more energy into the market and create conditions for achieving national strategic objectives. In addition, the comrades of CDB seriously summarize the experiences and laws in the practices and explorations, draw wisdom and strength from practices and explorations, and constantly learn, practice and explore again and again in the changing situations, which is very significant.
Due to the severe situations brought about by the international financial crisis and economic downside, the unfavorable and uncertain factors of external environments are increasing. As a big developing country, China has been staying in a primary stage of socialism for a long time, with a large population, shortages in resources and unbalanced development.
The next period is critical for China to realize industrialization, urbanization and modernization of the national economy. Therefore, we must intensify and improve macro-economic control in a practical manner, apply a market economy development mode under government leadership, and attach great importance to the position and role of development-oriented finance in new situations.
For a long period in the future, infrastructure, basic construction, strategic industry, environmental protection, poverty reduction, disease control and rural development will be the concerns of China's government and the long-term objectives of CDB as a national development-oriented finance institution.
Anyway, the role of development-oriented finance is quite important and irreplaceable. The future development of CDB should focus on the medium and long-term policy-related businesses, pursue a development route different from that of commercial banks, maximize favorable factors and minimize unfavorable ones, and combine banking characteristics such as commercial transformation and medium and long-term bonds with national development strategies. It should also strive to continuously improve the market operation mechanism for development-oriented finance, and fulfill differential development of commercial banks. Besides, differential regulatory policies, incentive mechanism and legal support for development-oriented finance should be prepared based on the improvement of commercial banking to provide a legal guarantee for the long-term sustainable development of CDB.
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