Strengthen banking sector’s service capacity to facilitate economic restructuring
Vice Chairman JIANG Dingzhi’s Speech at 2010 Sina Golden Kirin Forum
2 November 2010
 
 
 
Distinguished guests, ladies and gentlemen
Good morning! I’m very glad to attend the Sina Golden Kirin Forum. Today I want to share some of my opinions about how to improve the banking sector’s service capacity in support of economic transition through change of the development mode.
 
At present, our economy faces with four major tasks during the course of change in economic development mode as follows.    
1. The economic drive should be changed to stress both internal and external demand while with emphasis on internal demand.
2. The economic structure should be adjusted to highlight emerging industry of strategic importance and green industry.
3. The economic pattern should be changed to one that can balance the economic development of urban and rural areas.
4. The economic system should be changed to one that can better promote inclusive growth.
 
To accelerate the change in economic mode, the banking sector can contribute in the following four aspects.
1 Strive to develop consumer finance to expand domestic demands.
2 Adjust the credit structure to boost economic restructuring.
3 Improve rural financial services to promote the balanced development of urban and rural areas.
4 Expand finance availability of the disadvantaged for more inclusive growth.
 
Apart from supporting the change of economic development mode, the banking sector should also actively advance the change of its own growth mode. That include:
1 Complete the change in banks’ development strategies
2 Niche its own market by pursuing differentiated competitive strategy.
3 accelerate the reform of organizational structure and business procedures to enhance innovative capacity and increase operational efficiency
4 Establish a performance appraisal system that balances returns and quality to adjust the business orientation from mere scale expansion to profit-and-quality focused.
5 Improve the ability to manage, control and mitigate risks to ensure a safe and sound banking operation which would facilitate the stability of the real economy.
 
Ladies and gentlemen,
The change in mode of economic development is not only an arduous long-term task, but also an urgent mission. Financial institutions in the banking sector should actively respond to the challenges while seize the opportunity to accelerate its own adjustment and improve service capacity. With that the banking sector can contribute to the change in economic mode and foster mutual facilitation and benign interaction between the banking sector growth and that of the economy and society.   
Thank you!
 
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