Banker calls for tighter risk control in Chinese banks

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Last updated at: (Beijing Time) Thursday, January 08, 2004

Banker calls for tighter risk control in Chinese banks

A senior Chinese banker has urged the country's commercial banks to intensify risk management to protect themselves against challenges of financial liberalization and globalization.

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A senior Chinese banker has urged the country's commercial banks to intensify risk management to protect themselves against challenges of financial liberalization and globalization.

Zhang Enzhao, president of the China Construction Bank (CCB), was speaking at the Forum on Risk Management and Internal Control in Commercial Banks, co-hosted by the CCB, Citigroup and Wuhan University, here Thursday.

"As for risk management, China's commercial banks lag far behind their advanced overseas counterparts in terms of ideas, technology, methods, systems and external environment," he said.

"Reforms should be deepened and modernization should be speeded up to ameliorate risk management," he added.

Zhang suggested commercial banks expand the scope of risk management from credit risks to market risks, operation risks and other risks.

He also suggested switching the focus of risk management from a single sum of the loan to the enterprise receiving the loan as a whole, extending the coverage of risk management from a single industry to industrial portfolios, and expanding domestic risk management into global risk management.

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