Source: CRI

02-29-2008 17:49

The China Banking Regulatory Commission says that China will continue with the financial banking reform, introducing more advanced international banking management strategies and technologies.

Director of Supervisory Rules and Regulations Department of the Commission, Huang Yi says, with the initial establishment of a win-win strategy between domestic and foreign-invested banks, supervision will be further improved.

"From the angle of cautious supervision and financial stability, the commission will amend those laws and regulations that are not in accordance with the rules of WTO. The commission will also look at the current situation in China and with the intention of supervision, try to create an environment of fair competition among Chinese and foreign banks."

Under Chinese financial reforms which went into force last December, foreign banks operating in China have the same preferential legal and tax treatment given to domestic banks.

The changes mean that foreign banks already operating in China can offer yuan-denominated services to local customers, putting them on an equal footing with domestic banks.

The new conditions also honor a commitment given to the World Trade Organization that China would open its financial services market to foreign banks.

Professor of finance with Renmin University, Zhao Xijun says to unify the supervision criteria of banks home and abroad is beneficial to both sides.

"Foreign banks' starting their business in light of related Chinese laws and regulations, and competing with domestic counterparts are not only conducive to bringing innovation to their products, but also to improving their service quality to meet the demands of customers."

So far, four foreign banks have started to offer Renminbi services in China. They are HSBC, Standard Chartered, City Bank and Bank of East Asia. The CEO of Standard Chartered, Peter Sands says he is very optimistic about the Chinese market.

"We will be launching many innovative RMB products here and we intend to increase the number of outlets to almost 40 by the end of next year."

An official with China Banking Regulatory Commission adds that foreign-invested banks in China will play a positive role in the Chinese market. The strengthening of supervision is beneficial to combat the impact of international and regional financial risks to the Chinese banking sector.

(Xu Weiyi, 2007-04-20)

 

Editor:Zhang Ning