PBOC Vows to Promote Healthy Development of Shareholding Commercial BanksThe governor of the People's Bank of China (PBOC) said Wednesday that shareholding commercial banks should further improve their corporate management structure and financial services to develop in a sound, steady way.Addressing a seminar on the reform and development of shareholding commercial banks held this week, Dai Xianglong spoke highly of the achievements made by China's shareholding commercial banks. He said that since 1986 when the China Bank of Communications resumed its domestic business, China has set up 110 shareholding commercial banks of all kinds, with an aggregate asset of 2.56 trillion yuan, accounting for 13.6 percent of the total assets of the country's financial institutions. At present the total deposits in China's shareholding commercial banks are 1.92 trillion yuan, accounting for 14.29 percent of the country's total deposits in financial institutions; the total loans are 1.26 trillion yuan, accounting for 12.07 percent; owners' equity totaled 117.2 billion yuan, accounting for 14 percent of the total; and last year they realized an aggregate profit of 11.8 billion yuan. Dai said that shareholding commercial banks have made a beginning in experiments with modern management, ownership reforms, personnel training, and serving medium-sized and small enterprises. "Shareholding commercial banks have played a significant role in promoting financial reforms and financial innovation, promoting economic development, creating jobs and increasing the State's financial income," he said. He said that to adapt to new situations and face new challenges, shareholding commercial banks must further deepen their reforms, including making more improvements to their corporate management structure, expanding their capital funds, separating ownership rights and management rights, and board of directors and board of supervisors. They should also pay attention to creating new services suited to their own characteristics, reinforce internal control efforts, raise asset quality, prevent financial risks and look into new ways of handling non-performing assets. He said that the central bank will continue to reinforce its supervision over shareholding commercial banks according to law, and will continue to improve its services to support shareholding commercial banks' development amidst reforms. |
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