21 October 2018

Financial reform should go nationwide, former CBRC chief says

Financial reform should be rolled out nationwide by the central government instead of stemming from a trial program in any single city, Phoenix Television reported Wednesday, quoting former China Banking Regulatory Commission chief Liu Mingkang {劉明康}.

On the sidelines of a business forum in Nanjing on Tuesday, Liu said China’s financial system should benefit commercial activity throughout the nation. He said it is impossible to restrict financial reform to one city because businesses have networks and payment systems that extend beyond any municipal limits. 

Any anticipation that the country’s financial reform can be triggered by a single test zone is a false hope, he said. 

Liu said former premier Wen Jiabao {溫家寶} launched financial reform in Wenzhou, Zhejiang province, two years ago because there was a need to do so. At that time, a lack of investment channels meant private capital was being informally lent to small and medium-sized businesses at high interest rates, raising risks in the nation’s financial system, Liu said. 

That reform was carried out to make informal loans more transparent rather than to advance interest rate liberalization or the establishment of private banks, he said.

– Contact HKEJ at [email protected]


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