China ponders new bank watchdog
(China) - The Beijing government is reportedly pondering a proposal to establish a new regulatory watchdog for the country's troubled banking sector.
Wei Jianing, a vice director of government think tank the Development Research Center, says the proposal is bank on the agenda in the run up to the annual meeting of the National People's Congress in March.
The People's Bank of China operates as both the central bank in addition to overseeing monetary policy, but the government has been considering plans to spin off the regulatory role into a new entity.
China's bank sector is saddled with bad loans and was rocked by series of corruption scandals last year, such as the investigation in southern Guangdong province into claims that officials at a Bank of China branch embezzled more than US$700 million.
A push by state-owned banks to become more commercial is also creating tensions in the sector.
The People's Bank of China operates as both the central bank in addition to overseeing monetary policy, but the government has been considering plans to spin off the regulatory role into a new entity.
China's bank sector is saddled with bad loans and was rocked by series of corruption scandals last year, such as the investigation in southern Guangdong province into claims that officials at a Bank of China branch embezzled more than US$700 million.
A push by state-owned banks to become more commercial is also creating tensions in the sector.
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