Liu Mingkang Possible to be Head of Banking Regulatory Commission

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Last updated at: (Beijing Time) Wednesday, March 12, 2003

Liu Mingkang Possible to be Head of Banking Regulatory Commission

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The proposal for the establishment of Regulatory Commission of Banking Industry (RCBI) submitted to the first session of the 10th NPC for consideration on Mar.6, 2003, has brought to light a mysterious corner of the RCBI. As the reporter learned on Sunday the manning plan for the People's Bank of China and the RCBI is to be submitted in to the departments concerned on Monday.

As revealed by a person with the PBC on Mar.9, the leading group in connection with the establishment of the RCBI inside the PBC called a special meeting on Mar.9, discussed and laid out the respective organizational setup and manning for the PBC and for the newly founded RCBI.

The person said the organizational and manning proposal for the PBC and RCBI will be handed in to China Commission for Manning Quotas on Mar 10. As learned, submitted in on the same day are the plans for the setting up of departments concerned listed in the newly issued plan of the State Council as regards the manning and size of organization, such as the Commission for Supervision and Management of State-owned Assets, Commission for National Development and Organization Reform.

In accordance with the proposal for the organizational reform of the State Council submitted in to be considered by the first session of the 10th NPC the newly-founded organization, the RCBI is an organization at the ministerial level under the direct control of the State Council. It will integrate into one the work for the supervision and management of those bodies in the People's Bank of China, Assets Management Company, Trust and Investment Company and in other financial bodies relating to deposits and the relative function of the Central Financial Working Commission.

Persons concerned made comments by saying, the establishment of the RCBI may help the PBC to spare the powers of one hand for its concentration on the work of monetary policy and in the meantime can help reduce the possibility of a biased policy for the banking industry.

As learned the PBC will mainly take up the job for inter-bank fund flows, including in particular the adjustment of interest rate, inter-bank cash settlement and payment and some new businesses. Whereas the regulatory functions of the RCBI should include the market accession for the financial bodies, supervision over the operation and checkup and meting-out of penalties for illegal or unruly behaviors, for example, the approval for the setup of Chinese and foreign owned banks and measures taken against the money laundry, etc.

Person of the sources said, the supervisory and management department of the RCBI consists mainly of Division 1, Division 2, Non-banking Division, Cooperative Management Division and Bank-management Division out from the present PBC. The other departments are formed of the personnel from the Central Financial Working Commission, possibly in charge mainly of the logistic work and the Banking Association is also very likely to be merged into the RCBI.

For the moment, the relevantly unanimous saying the reporter learned in regard with the President for the RCBI is Liu Mingkang who is now holding the post of President of the PBC. And the Party Secretary is Yan Haiwang, now the deputy-secretary of the standing committee of the Central Financial Working Commission.

Along with the setup of the RCBI the days for a uniformed integral of the People's Bank of China taking up the job for monetary policy and banking supervision for some 50 years since the founding of the People's Republic of China are coming to en end now.

Experts are of opinion that the establishment of the RCBI will provide a broader view for the central bank and it will no longer limit its attention only on commercial banks but a wider view to all financial organs having business relations with it. It can also rivet its attention on the function of monetary policies while setting greater store by the industrial sectors and substantial economy.

By People's Daily Online

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