Vice Chairman Wang Huaqing delivered a speech at the tele-conference of preparatory work of Public Education Day of the banking industry

   Vice chairman Wang Huaqing of the CBRC attended the video and telephone conference discussing the preparatory work of activities on Public Education Day of the  banking industry on Oct. 11th of 2010 and delivered an important speech, the main ideas of which may be summarized as follows;

    Firstly, it has been a global trend to strengthen public education of financial industry. The extensive complexity of financial products, coupled with investors’ lack of professional knowledge contributes to information asymmetry, which has distorted the market prices and produced the serious risk-return mismatch in financial markets, making an important reason of the breakout of this financial crisis. After the crisis, America and European countries have already had relevant bills passed in succession, mainly about the protection and education upon financial consumers.

    Secondly, commercial banks are expected to take the primary responsibility of public education. Public education has always been an essential part of the development of the banking industry and also an indispensible way via which banks fulfill their social responsibility. Financial institutions of banking industry should make full use of their resources to popularize professional knowledge of financial industry to the public from different perspectives, which for one thing helps improve people’s capability of detecting and guarding against financial risks and for another thing makes consumers more confident in the financial products and services provided by banks, winning the support of the public to the sound development of banking industry.

    Thirdly, Public Education Day is a good opportunity to accumulate relevant experience and thus needs to be treated with due seriousness. All local CBRC offices, associations and commercial banks should make their work of the Day mainly focused on “three combinations”. The first one is the combination between general themes and specific themes, which means adjusting forms of activities according to the general mastery of the financial knowledge and actual demands of the public under their jurisdiction; the second one is the combination of the organization work and publicity, trying to make the activity popular among the public so as to attract the whole society to know, pay attention to and support public education; the third one is the combination of single activities and long-term effects, realizing the establishment of long-term mechanism for public education and incorporating public education into their overall strategic development planning. 

    At last, Vice Chairman Wang Huaqing stressed once again the great significance of public education and encouraged financial institutions to make joint efforts to pave solid foundations for the sound development of banking industry and long-term steady of financial market.

 

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Copyright: China Banking Regulatory Commission
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