The top legislature of China started to debate on an amendment in draft law on October 27, 2006. This law would permit the investigation of non-financial enterprises and individuals by the banking supervisory units. The draft emendation to the ordinance on the regulation and supervision of banking sector was relegated to the 24th session of Standing Committee of the tenth National People's Congress for its first reading.
This law has been designed to further intensify the supervision on the banking sector in China. The existing law that came into effect in 2004 lets CBRC (China Banking Regulatory Commission) and its arms to supervise, investigate and collect information from financial bodies only.
But Liu Mingkang, Chairman, CBRC, believes that existing law fails to allow the banking supervisors to efficiently clamp down on illegitimate practices in the Chinese banking sector.
He informed that bank insiders conspired several cases with outside enterprises and individuals that are not under the investigatory power of banking supervisory authorities. The subsidiaries of CBRC reported about 76 complaints of obstructions in investigations in 2005.
As per the views of Research Analyst at RNCOS, who has recently researched a report on "China Banking Sector Analysis (2006-2009)", giving more authority and power to the banking supervisors will help in eliminating risks that the emerging financial sector of China will face when the sector will be opened to foreign players.
The research report also addresses some interesting issues that are critical for today's business environment, like:
§Insight into market trends
§Growth sectors and factors driving change
§Opportunities, strategies and challenges for the banking industry
§Competitive environment and market and brand leaders
§Services driving the Banking Sector in China
The report provides extensive research and rational analysis on the growing banking industry, their product quality and services in China. This report helps clients to analyze the leading-edge opportunities critical to the success of the banking Industry in China.
For more information visit: http://www.rncos.com/Report/IM043.htm
