China is looking ahead to set up a new agency that will aim to keep a check on the central bank's regulatory banking efforts and also on the market watchdogs in the financial sector in China.
China is looking ahead to set up a new agency that will aim to keep a check on the central bank's regulatory banking efforts and also on the market watchdogs in the financial sector in China.Vice Finance Minister of China Li Yong when addressing a finance conference said that the, agency shall be set-up to keep track of changes being made to build up Chinese banking sector.
According to news published in The China Post, Yong said that they are making efforts to build up a financial supervisory coordinating structure between the fiscal department, central bank financial and regulators.
Chinese policymakers will most likely have a meeting later this year for holding discussions on the possible refurbishing of Chinese financial system. Recently, two similar meetings took place, which were followed by major amendments being to the financial policies of China.
China has been through problems of loans not being paid in the state's commercial banks and, thus, regulators are being looked at to revive securities and insurance sector in China.
"Declining consumer base, inadequate technological and management assets, may obstruct the growth of local banks of China taking into account the competition from foreign players. The banking sector still faces problems of poor quality of assets, low profitability and low capitalization", according to a recent report "China Banking Sector Analysis (2006-2009)" published by RNCOS.
China, also, plans to build up a deposit insurance system. Regulators are analyzing US Federal Deposit Insurance Corporation that can insure deposits in case of bank failure.
This agency will aim at encouraging depositors, seeing that the state banks terminate financial support coming from the government.
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