China's central bank will heighten supervision of the banking sector this year to improve its management and overall quality, said a senior official of the central bank.

Dai Xianglong, Governor of the People's Bank of China (PBOC), said at the PBOC's annual working meeting, which closed today, that the safety, efficiency and stability of the banking sector is critical for the smooth operation of the national economy and for hitting the targets of national economic development.

He said that in recent years China's financial reform has achieved great results. The central bank's supervisory power has been reinforced and commercial banks' management level largely improved.

While successfully warding off the adverse effects of the Asian financial crisis, China has solved some financial problems and promoted economic development and social stability.

He demanded that the banking sector increase its sense of urgency and sense of responsibility, and earnestly implement all the financial reforms.

He said the central bank should step up self-discipline and constantly improve its level of financial supervision. The central bank should reinforce financial supervision according to law, and promote the internal control of commercial banks.

The central bank will also fully use its lever to reinforce its supervision of corporate production and management activities, so as to raise the efficiency of credit capital and push forward economic restructuring.

More will be done to rectify social credit and financial order, and strictly enforce settlements. Illegal financial activities will be dealt with severely.

Dai said that to meet the challenges of China's accession into the World Trade Organization and improve banking management efficiency and international competitiveness, China will continue to deepen its financial reforms and speed up the establishment of a modern banking system. (Xinhua)