China’s banking regulator vowed more supports to the Belt and Road development, sayingthat the banks and financial institutions are encouraged to offer more financial supports toprojects related to the initiative.
The banks and financial institutions, in recent years, have been motivated to improve theircapabilities to establish a multi-layered, long-term, stable, sustainable financial serviceplatform 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 andRoadconstruction, he added.
The official said that banks and other financial institutions, guided by the regulator, haveaccelerated 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 expandingopenness to overseas market, Wang said.
Since the Belt and Road initiative was put forward in 2013, the banking regulatory bodyhas established work mechanisms, enhanced overall planning, and effectivelyimplemented each measure and policy, the official noted.
The CBRC also requires banking and financial institutions to enhance their managementin credit risk, country risk, compliance risk, as well as environmental and social risks byclarifying standards for their overseas operation.
The banking and financial institutions also optimized their layout in Belt and Roadcountries, thanks to the efforts made by the CBRC.
Data showed that by the end of 2016, 9 Chinese banks have established 62 primaryaffiliates in 26 countries participating the Belt and Road initiative, including 18subsidiaries, 35 branches and 9 representative offices.
Banks from Belt and Road countries are encouraged by the CBRC to expand theiroperations in China as well.
As of the end of last year, 54 commercial banks from 20 Belt and Roadcountries hadestablished subsidiaries, branches and representative offices in China.
The CBRC also encourages Chinese banking and financial institutions to improve theircross-border financing services, and loan more to programs related to the Belt and Roadinitiative on a precondition of controllable risks and sustainable potential.
Banks were also asked by the regulatory body to render more support to implementationof the initiative and construction of major projects.
CBRC has launched various forms of cooperation with its foreign counterparts in countriesalong the Belt and Road, Wang said.
In the future, the organization will sign cooperation memorandums of understanding formutual regulation with en-route countries, based on their political and economicsituations, 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 uparegionalcooperationsystem on financial regulation.
The banking and financial institutions should take the historical opportunity of the Beltand Road construction for a better and internalized growth, Wang said.
In addition, they should keep enhancing win-win cooperation with Belt and Roadcountries for common development, Wang added.
The article is also published on People’s Daily Online