China's
commercial banks have been warned that competition will sharpen
after the country fully opens its banking sector to foreign-funded
banks.
Foreign banks that previously targeted high-end customers would
turn their attention to small and mid-sized enterprises, said Bank
of China vice chairman Zhu Min.
?
?
Meanwhile mainland domestic banks would seek out high-tier
business, Zhu told "The China Conference: Financing--Harmonious
Growth" in Beijing.
Discussion of China's future banking sector heated up after the
release of regulations on Nov. 16 allowing foreign-funded banks to
conduct Renminbi business for Chinese citizens before Dec. 11.
The government will encourage and guide foreign banks to set up
incorporated banks registered in China, which will enjoy the
benefits of the country's banking sector.
The government has taken measures to open financial markets,
including the introduction of foreign strategic investors, which
allowed the Industrial and Commercial Bank of China to invite
Goldman Sachs, Allianz and American Express, said Dong Tiefeng, an
official with the China Banking Regulatory Commission.
The non-performing loan ratios of major state-owned banks
dropped to below five percent after going public, he said.
The reform's ultimate goal was to transform the banks into
market players with efficient, modern corporate governance, he
said.
Cao Yuanzheng, chief economist with Bank of China International,
said Chinese banks should improve their capital structure and
provide more diverse products. They should also pay more attention
to business risks, especially in fields such as electronics and
information resources sharing.
(Xinhua News Agency November 25, 2006)
