Promoting Quality Banking Services to the Real Economy

Speech by Assistant Chairman Yan Qingmin

on the release ceremony of China Banking Industry Development Report (2011-2012)

 

Ladies and gentlemen,

 

Good morning!

 

It’s a great pleasure to attend today’s ceremony for releasing the China Banking Industry Development Report (2011----2012). It is the second time for China Banking Association (CBA) to deliver to the public the development report of Chinese banking industry, compiled under the coordination of CBA with the participation of more than ten banking institutions and a dozen of banking experts and academics within a half of year. The report covers in-depth analysis and outlook on the business environment, development model, businesses types, risk management and business performance of the Chinese banking sector. It also integrates thematic review and featured columns on hot-spot issues concerned by the public. It has already become an important platform for public education and information disclosure of the banking sector developments. Taking this opportunity and on behalf of the CBRC, I’d like to congratulate on the release of the report!

 

Under the current complex financial circumstances both domestically and internationally, it remains a daunting task to maintain steady growth, control commodity price, adjust economic structure, promote people’s well-being, press ahead with reform and facilitate social harmony. For the banking sector, we must be somberly aware of the current situations and get well prepared for potential risks by addressing the following three issues.

 

The first is to strike a proper balance between risk prevention and real sector growth. The banking industry should endeavor to promote a steady and sound development of real economy by means of implementing macro-adjustment policies and counter-cyclical prudential policies, further optimizing credit structure, reducing financing costs and facilitating domestic consumption and stable investment. On one hand, the banking industry should firmly guard against risks in a more proactive manner. The industry should be more forward-looking and active in risk control through continuously improving corporate credit rating models, credit extension standards, customers screening technology and credit management culture, and at the same time, innovating service models, credit products, management procedures and interest rate pricing mechanism. On the other hand, the banking sector should seek to resolve risks at an early stage. Banks should develop early warning, early identification and early resolution mechanisms of risk so as to be more sensitive to key risks, emerging risks and the trend of risks.

 

The second is to coordinate traditional banking businesses and financial innovation. One of the key causes of the global financial crisis is the excessive financial innovations and high leverage of the European and US banking industry. That rings the bell for the Chinese banks. Against that, we should always highlight the traditional business and continue to optimize the business procedures, incentive mechanism, service quality, operational efficiency and business structure. Meanwhile, financial innovation should be more prudently pushed forward. It should be recognized that the prerequisite for financial innovation is to improve financial service, lower risks and improve efficiency. The banking sector should aim to offer diversified and multilayered services, seizing the precious opportunity to develop financial innovation and further facilitating the transformation of banking sector.

 

The third is to integrate performances pursuit and social responsibilities fulfillment by the banking institutions. Apart from seeking profits under commercial principles and in accordance with applicable rules, the banking institutions are also expected to fulfill social responsibilities and interact with the real economy in a virtuous way. Tremendous achievements have already been made in these sectors, but the expectations from the public and the development of real economy have raised higher requirements. In this respect, CBA should actively play its role of guiding the strengthening of self discipline and improvement of public image by banking institutions through enhancing an urgent sense of responsibility.

 

Ladies and gentlemen, despite the complicated and turmoil financial situations, it should be noted that the Chinese banking sector is still in a phase of strategic important with vast opportunities. It is my hope that we will consolidate our confidence, keep abreast with the times, constantly seek changes and accelerate the strategic restructuring for a safe and sustainable development of our banking sector.

 

Last but not least, I wish the ceremony a great success!

Thank you!

 

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Copyright: China Banking Regulatory Commission
ADDR:Jia N0.15 Financial Street, Xicheng District, Beijing, 100033