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Management of State-owned Commercial Banks Improved
Dai Xianglong, governor of People's Bank of China (PBOC), pointed out at the recent supervision working meeting of the PBOC that growth of bad credit ratio of the four state-owned commercial banks decreased in 2000. Since the fourth quarter of 2000, bad credit ratio of the four banks has reported a net decline and so far the declining tendency has been kept for nine months. From January to June of 2001, bad credit ratio decreased by 2.1 percentage points. The management level of the banks has been further improved. Systems of authorization and accredit, the separation of examination and credit, audit and checking and cadres exchanges have been generally set up. Awareness for risks and profits has been enhanced and the risks of medium and small financial institutions have been basically placed under control.
Dai emphasized that the PBOC should take the "three represents" as its important theoretical direction, make clear the target and tasks of banking supervision in the new situation and strive hard to finish the historical tasks of financial supervision. Financial supervision institutions must strictly adopt the rules that when there is a law, it mush be obeyed, enforcement must be strict, and lawbreakers must be prosecuted. They must keep on strengthening the concept of supervision according to the laws and regulations; the setup and functions of supervision institutions must be adaptive to the new situation; the cadre teams must accommodate to the new tasks. Bad credit ratio by the four state-owned commercial banks and policy banks should decrease by 2 to 3 percentage points annually this year and next.
By PD Online staff member Du Minghua
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