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Although no timetable has been set for two of China's big four
state-owned commercial banks to be listed, efforts will be made to
turn the Bank of China and Construction Bank of China into modern
commercial banks in three years, the head of the country's banking
industry watchdog said Thursday.?
They will be turned into internationally competitive joint-stock
commercial banks featuring capital adequacy, strict internal
control, safe operation, and good performance, said Liu Mingkang,
president of the China Banking Regulatory Commission (CBRC).
The Chinese government, for the first time in history, injected
US$45 billion of its foreign exchange reserve in the two banks to
help increase their capital adequacy ratio earlier this year.
"But the key to success lies in the transformation of their
operational mechanism," Liu said at a press conference held on the
sidelines of the on-going annual session of the national
legislature.
This means the two banks should establish a good corporate
governance structure, introduce overseas strategic investors, map
out a clear-cut development strategy and cultivate a sound risk
control and internal control mechanism, he added.
As for when the two banks will be listed, Liu said, "it is
against the law" to disclose any timetable or plan prior to
official consent of the China Securities Regulatory Commission.
The CBRC president spoke highly of the role of the four assets
management companies, formed in 1998, in promoting the banking
reform in the country, saying they had contributed to lowering the
non-performing loans of the big four state-owned commercial banks
by 10 percentage points in 1999-2000.
The other two of the Big Four are Industrial and Commercial Bank
of China and Agricultural Bank of China.
Liu said these assets management companies also helped thousands
of Chinese companies have their debts reduced by an average of 20
percentage points and helped brew an assets management market in
the country.
"They will continue to play a role in the disposal of the
non-performing assets of the big four state-owned commercial banks
in accordance with market law," Liu said.
(Xinhua News Agency March 11, 2004)
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