Zhou Xiaochuan: Accelerating Market-Oriented Reform of Interest Rates

BY  | FROM CSFJN | 2012-11-15 09:34
 
On November 11th, the press center of the 18th CPC National Congress held a media interview on the topic of “Banking Reform and Scientific Development in China”.
 
Zhou Xiaochuan, Governor of People’s Bank of China, spoke about the current economic movements. He pointed out that China’s economy had encountered some hardship since the fourth quarter of last year. The economic growth slowed down a bit in the second quarter of this year. After timely macro-control measures taken by the central government, the economic figures have been stabilizing since this summer, especially after September and October, and many indicators will continue to improve.
 
When asked “should China accelerate or decelerate the market-oriented reform of interest rates”, Zhou said the reform is an on-going process and the best choice is the most suitable one. In response to the discussion on China’s “shadow banking system” that was very popular among some foreign medias lately, Zhou said compared with what was exposed during the financial crisis about the developed countries, the shadow banking system in China is much smaller and less problematic.
 
When asked about the rebound in banks’ non-performing loans, Shang Fulin, President of China Banking Regulatory Commission, said it is true that non-performing loans have been rising this year, mainly due to the changes in the operation of some industries. However, the asset quality of banks is stable and the risks remain controllable. In response to the question about how to encourage and guide private capital to enter the banking industry, Shang said there is no legal impediment to it.
 
The presidents of the four state-owned banks talked about the banking reform and development in the interview. Jiang Jianqing, President of the Industrial and Commercial Bank of China (ICBC), introduced that ICBC has been pursuing internationalization for 20 years and will continue to move steadily toward a multi-national bank. When asked about the competition in the financial field of “three rural issues”, Jiang Chaoliang, President of China Agricultural Bank (ABC) said ABC is ready for any coming challenge. Xiao Gang, President of Bank of China (BOC) said being selected as one of the global systemically important banks symbolizes the global recognition of BOC’s brand cross the century and the accomplishments made by China in the financial reform. Wang Hongzhang, President of China Construction Bank (CCB), said in order to cope with the market-oriented reform of interest rates, CCB has done several jobs, including drafting a comprehensive operation strategy, enhancing its pricing ability, and adjusting its credit structure and the way it is managed.
 
 
 
 

      Reuters

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