China vows to invigorate banking sector, vice premier says

Chinese Vice Premier Huang Ju said Monday in Beijing that China will take measures to adapt and improve its banking system to cope with the increasingly complex international financial environment.

"Over the past 20 years, China's banking sector has maintained stable growth and played an increasingly important role in promoting economic and social development," said Huang while addressing the International Monetary Conference (IMC) 2005 Meeting, which opened in Beijing on Monday.

This is the first time China hosts the IMC annual conference, which convenes bankers from around the world to discuss issues in international economy and finance and promote cooperation.

China intends to strengthen the oversight of its banking sector partly by setting up a financial security system combining banking self-discipline and a mixture of market and governmental supervision, said Huang.

Huang said China will also further reform its stockholding system and transform state-owned banks into independent actors.

Additionally, "China will continue to open up its banking sector to the outside and step up international cooperation and exchanges," said Huang.

But he also warned of likely inflation and financial risks, saying China will be alert to pitfalls as it pursues economic growth.

The government also seeks to construct a credible legal system to create favorable conditions for the banking sector.

Economic globalization has provided the global banking sector with both new opportunities and challenges.

Huang suggests world banks enhance financial supervision, improve financial services and innovation, and conduct extensive international cooperation.

Source: Xinhua