 |
Legislation on Foreign Banking Essential in China: Senior Banker
Wang Xuebing, president of the China Construction Bank, regards that it's necessary for China to legislate laws on foreign banks based on national treatment for better regulating competitions between Chinese and foreign banks in face of challenges arising from the financial globalization and China's entry into WTO.
Wang expressed this point in his thesis submitted to the on-going "21st Century Forum".
After elaborating on irreversibility of financial globalization and unfavorable position of the developing countries in the course, he said that China, as the largest developing country, confronts more challenge than opportunities in the course of financial globalization.
The senior banker pointed out that seeing from international experience and practices by banks that have entered Chinese market, it will be at the heart of competition between Chinese and foreign banks to monopolize foreign currencies business, to strengthen intermediary business, to fight for good enterprises and to attract high-qualified personnel from Chinese banks.
This means that the market positioning of foreign banks will tend to be the same with that of Chinese banks, which will undoubtedly bring fierce competition to banking service. The worst result of the battle, he warned, might be that those foreign banks make large profits while our own banks are all losing.
Wang noted that China should step up more efforts to restructure and reform Chinese banks for better heading on globalization and challenges confronting Chinese banks after China opens its financial market to the world.
In This Section
|