An official with China Banking Regulatory Commission (CBRC) said recently that the reform of China's banking industry is in a crucial stage. The work this year should be laid on the shift of management mechanism and on pushing on the reform of China's banking industry to a greater scope.

The official with CBRC noted that China will accelerate the overall reform process of state-owned commercial banks in a down-to-earth manner in 2005. All the supervision departments concerned will continue to intensify the guidance, supervision and assessment over the reform of Bank of China (BOC) and China Construction Bank (CCB), further improve company-governing mechanism, speed up the reform process of branches, strengthen the risk management, improve the internal administrative mechanism, set up a performance evaluation system taking maximum profits and capital safety as the core. Meanwhile the departments will also take strict preventive measures against the rebound of bad loans and criminal cases and urge BOC and CCB to make thorough preparation for the stock listing.

While forging ahead the reform of state-owned commercial banks, CBRC will also make efforts in solving the problems of the property right and management systems in the reform process of the credit cooperatives in rural areas, vigorously boost the reform in four capital management companies, and clarify the requirements of development orientation and internal management for the capital management companies under the new circumstances. Meanwhile, CBRC will spare no time in formulating The responsibility guidance to directors in joint-stock commercial banks and strengthening the supervision and management over the small-and-medium-sized commercial banks with high risks, urging them to introduce strategic investors, improve the legal person management system and sturdily advance the proper development of small-and-medium-sized commercial banks in the process of reform and regrouping.

By People's Daily Online