Top Biz News

Gov't takes aim at banking problems

By Sun Min (China Daily)
Updated: 2006-07-04 08:17

Over the past few years, a number of high-ranking officials in other big State banks, including the newly-listed Bank of China and China Construction Bank, were also arrested for corruption and fraud.

The number of such cases is still frequent throughout the industry, a CBRC spokesman admitted.

Even though the watchdog made some progress in 2005, it still needs to take tougher action to consolidate results and prevent similar cases in the future, he said.

CBRC will also enhance co-operation with other departments, including the police and auditing office, to increase efficiency. And more attention will be paid to big commercial banks.

China's major banks are preparing for increased competition by listing on overseas or domestic markets, while an increasing number of smaller joint-stock banks are introducing foreign investors and going public.

"The banking sector is a crucial part of the national economy and it also reflects the major problems in the economy," said He Ziyun, a banking professor with the University of International Business and Economics.

Problems in the banks can be cured by efforts from other sectors as well as more surveillance from the public, auditors and intermediaries, he said.

However, combining discipline and stability during reform remains a challenge, he warned.