Chinese banker: domestic banks should not fear opening of financial sector

Domestic banks do not fear the challenges brought up by the opening of China's financial sector, said Zhu Xiaohuang, chief risk consultant of China Construction Bank on Friday.

Zhu said by the end of this June, a total of 71 foreign-invested banks set up 214 agencies in China and they are involved with RMB banking service in 25 cities. Twenty-six overseas financial institutes purchased shares in 18 China-investment companies worth 17.9 billion U.S. dollars.

"We can foresee that domestic banks will face great challenges posed by foreign banks in terms of intermediate service, personnel, products and management experience," Zhu said.

"Domestic banks should fully prepare and highlight their advantages in international competition," Zhu said. Domestic banks all have long histories and strong credibility that have attracted local customers, and the branch offices and ATM services nationwide have forged a highly efficient network, he said.

Zhu said the opening of financial sector has also brought opportunities. "Domestic banks will have to facilitate reforms, speed up product and service innovation, and promote personnel training."

Source: Xinhua

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