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| Draft plans for establishing private banks in China |
| CCTV.COM 2003-07-23 12:07:11 |
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Draft plans for establishing private banks in China were presented Tuesday by the China Great Wall Financial Research Institute. The institute sought advice from 40 experts from China's State Council, the central bank and academic fields.
Xu Dianqing, the founder of the China Great Wall Financial Research Institute, has been looking at the possibility of setting up private banks in China for several years. Many analysts have suggested private capital should be used to revitalize the banking sector.
But Xu pointed out the problem of attracting private capital to the banking sector is the huge amount of bad debts carried by the banks. "Enormous bad assets exist in China's banks. And private capital sees no profits in the situation. Thus they hesitate to enter the sector," said Xu.
In the draft plan, Xu said entrepreneurs should find ways to build up private banks, not associated with China's existing state－owned banks. After experts review the plan, it's expected five pilot project banks will formally issue applications to China's Banking Regulatory Commission.
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Editor: Yang Feiyang CCTV.com
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