China's state banks cut 250,000 jobs in 1998-2002

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Last updated at: (Beijing Time) Thursday, November 13, 2003

China's state banks cut 250,000 jobs in 1998-2002

China's four major state-owned banks cut approximately 250,000 employees during the past four years in a bid to enhance efficiency, a senior banking supervisor said.

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China's four major state-owned banks cut approximately 250,000 employees during the past four years in a bid to enhance efficiency, a senior banking supervisor said.

The 1998-2002 period also saw the four banks trim some 45,000 subordinate units, said Tang Shuangning, vice chairman of the China Banking Regulatory Commission (CBRC), on Tuesday at an international forum on WTO and China sponsored by the Ministry of Commerce and Beijing Municipal Government.

The four banks are the China Construction Bank, the Industrial and Commercial Bank of China (ICBC), the Bank of China and the Agricultural Bank of China.

The streamlining process is still going on with a view to better competing with banks from overseas, which have been given wider access to the Chinese banking market after China's entry into the WTO.

Tang also revealed policies at the forum regarding the reform of the four banks. They are:

-After meeting certain conditions, these banks could be transformed into state-controlled share-holding banks; and

-- After meeting certain conditions, these banks could seek listing on the stock market.

As China honors its WTO obligations in opening up the banking sector, it also feels increasing pressure from foreign banks, Tangsaid. Compared with their foreign counterparts, Chinese banks are still inferior in a number of business fields, including corporate governance structure, asset quality, capital, capacity to earn profits and innovation ability.

Chinese banks have no time to lose in bracing for a massive influx of foreign competitors, expected to occur five years from China's WTO entry in December 2001.

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