Chinanews, Beijing, Mar. 23 – China will further improve its supervision system over foreign banks and will speed up the efforts of applying unified supervision standards for both domestic and foreign banks, says a report issued by the China Banking Regulatory Commission on Thursday.

 

In this "Report on the Opening-up of China's Banking Industry", it is said that while the opening-up of the banking industry has brought positive impacts on China's financial system, it has also created some risks. Chinese government has paid close attention to the possible risks emerging during this process and will take effective measures to improve the supervision work over foreign banks. In taking various measures, it hopes that the supervision work over foreign banks will become more comprehensive, detailed and professional, and Chinese banking system will become more secured.

 

While opening up the banking system, China should strengthen its supervision work and try to raise the supervision level by introducing more international practices, the report stresses.

 

In the next step, China will raise the effectiveness and professionalism of supervision from various aspects. First, China will try to unify the supervision standards applied to domestic and foreign banks, especially those foreign banks that have registered in China. With this measure, China hopes to create a fair market environment.

 

Secondly, China will bring its supervision work into line with international standards. It will consult and follow the Core Principles for Effective Banking Supervision made by the Basel Committee on Banking Supervision to make domestic supervision more transparent and effective.

 

Finally, China will take active measures to improve the external environment in banking supervision and will promote the implementation of international accounting practices in China, the report says.