China’s banking regulator vowed more supports to the Belt and Road development, saying that the banks and financial institutions are encouraged to offer more financial supports to projects related to the initiative.
The banks and financial institutions, in recent years, have been motivated to improve their capabilities to establish a multi-layered, long-term, stable, sustainable financial service platform with controllable risks for the Belt and Road development, said Wang Zhaoxing, deputy head of the China Banking Regulatory Commission (CBRC).
They were also asked to cope with the risks and challenges confronted by the Belt and Road construction, he added.
The official said that banks and other financial institutions, guided by the regulator, have accelerated their pace to build financial service network for Belt and Road construction.
They have made prominent achievements in distributing their overseas branches, improving cross-border financing ability, innovating products and services, and expanding openness to overseas market, Wang said.
Since the Belt and Road initiative was put forward in 2013, the banking regulatory body has established work mechanisms, enhanced overall planning, and effectively implemented each measure and policy, the official noted.
The CBRC also requires banking and financial institutions to enhance their management in credit risk, country risk, compliance risk, as well as environmental and social risks by clarifying standards for their overseas operation.
The banking and financial institutions also optimized their layout in Belt and Road countries, thanks to the efforts made by the CBRC.
Data showed that by the end of 2016, 9 Chinese banks have established 62 primary affiliates in 26 countries participating the Belt and Road initiative, including 18 subsidiaries, 35 branches and 9 representative offices.
Banks from Belt and Road countries are encouraged by the CBRC to expand their operations in China as well.
As of the end of last year, 54 commercial banks from 20 Belt and Road countries had established subsidiaries, branches and representative offices in China.
The CBRC also encourages Chinese banking and financial institutions to improve their cross-border financing services, and loan more to programs related to the Belt and Road initiative on a precondition of controllable risks and sustainable potential.
Banks were also asked by the regulatory body to render more support to implementation of the initiative and construction of major projects.
CBRC has launched various forms of cooperation with its foreign counterparts in countries along the Belt and Road, Wang said.
In the future, the organization will sign cooperation memorandums of understanding for mutual regulation with en-route countries, based on their political and economic situations, as well as the will of the banking and financial institutions, he added.
The official furthered that the CBRC will also explore the possibility to set up a regional cooperation system on financial regulation.
The banking and financial institutions should take the historical opportunity of the Belt and Road construction for a better and internalized growth, Wang said.
In addition, they should keep enhancing win-win cooperation with Belt and Road countries for common development, Wang added.
Source: People’s Daily/NewsGhana.com.gh