China must ensure control in State-owned bank reform

Mar. 21, 2006 (China Knowledge) – Chinese Premier Wen Jiabao said at the press conference of the Fourth Session of the Tenth National People’s Congress that the State must keep the dominant shareholder position to retain control of the economic lifeline and against financial risk in the process of reforming China’s State-owned commercial banks.

Wen also stressed that the state should enhance its management of the entire reform process of banks, improve the internal control mechanism and supervision system, and prevent the loss of State-owned assets.

“The goal of reforming State-owned commercial banks is to set up a modern commercial banking system. We are trying to find various means to realize the public ownership, and the share-holding system is an effective way among them,” Wen said.

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