Banking Reform to ContinueChina will continue its drive to reform its banking industry and adhere to a proactive financial policy in order to propel the nations' economic growth, according to a senior official with the financial sector.Tese reform procedures include establishing a modern law and regulatory system catering to international standards, speeding up the reform process of commercial banks, developing and regulating the financial market and strengthening supervisory systems, said Cai Ersheng, assistant president of China's central bank -- the People's Bank of China -- and president of the bank's Shanghai branch. Speaking at the CLSA (Credit Lyonnaise Securities Asia) China Forum 2000 Thursday in Shanghai, Cai said China is considering allowing several commercial banks to go public on the stock market either at home or abroad when they are ready because the move would help them reshuffle their structure towards becoming modern commercial banks and ward off financial risks. "There are at least two obvious advantages that the commercial banks would enjoy after the listing,'' said Cai. "One is that the investors can obtain a more transparent vision of the operations of the banks.'' And such a vision would help to create an equal, fair and transparent competitive environment, under which those companies catering to the market needs would survive and those not would be driven out of the game,'' said Cai. "The listing would also help us to strengthen our supervision works for a healthy development of China's financial market.'' said Cai. "Strengthening our supervision does not refer to a tight and rigid control over the banking sectors, it is mainly for the purpose of controlling and fending off the financial risks and regulating a legal competitive environment so as to protect the investor's interest.'' said Cai. |
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