Monday, November 06, 2000, updated at 09:14(GMT+8)
Business
Experts: China Should Quicken Development of Non-State Banking System
At the 6th Cross-Strait Finance Symposium held recently in Beijing, Yi Gang, deputy Secretary-general of the Monetary Policy Committee of People's Bank of China, pointed out that China should accelerate the development of non-government banking system to meet the challenges posed by global financial integration.
He maintained that the significance of developing the non-government banking system is manifested in the following three aspects: first, it helps promote competition, changing the present pattern of monopoly by the four largest State banks as quickly as possible to form a market environment of positive competition is of vital importance to enhancing the mainland bankingĄ¯s overall competitiveness; second, it helps solve the distortion of resource allocation. At present, the output provided by State-owned industrial enterprises is less than 30 percent of the total output of banks, while the credit funds they expend account for 70 percent of the total credit capital of State-owned banks; third, decentralization of the banking system is beneficial to the strengthening of financial management of the central bank.
It's reported that the policy-related functions borne by State-owned commercial banks can't be released very soon, so the interference from the government will continue to exist. Besides, time is needed for the reform of State banks' property rights, the regrouping of assets and the establishment of a modern legal person administrative system. Under such circumstances, banks in China's mainland should adopt more active measures to improve the existing banking system.
At the 6th Cross-Strait Finance Symposium held recently in Beijing, Yi Gang, deputy Secretary-general of the Monetary Policy Committee of People's Bank of China, pointed out that China should accelerate the development of non-government banking system to meet the challenges posed by global financial integration.