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NDRC puts forward financial reform targets

(chinadaily.com.cn)
Updated: 2007-04-25 17:21

TheNational Development and Reform Commission(NDRC) issued a report setting China's financial reform targets during the11th Five-year Program(2006-10) yesterday, according to Xinhuanet.

The report outlines five targets for financial reform:

1) Improve the financial control mechanism and increase macro-control level, and enable the financial industry to fully participate in macro-control.

2) Strengthen financial enterprises reforms, establish a modern financial enterprise system with abundant capital, rigorous inner control and safety operations, as well as good service and increasing earning capacity.

3) Speed up the development of the financial markets and increase direct financing percentages and optimize the finance structures.

4) Further improve the financial supervision system and strive to improve supervision levels, set up a long-term system to enhance risk control, and maintain financial stability.

5) Improve on payment clearing by doing them faster, collect more information on credit checks.

Other highlights of the financial reform targets include:

- Setting up an interest rate through a market means and form a more flexible interest rate mechanism
- Complete shareholding reforms of stated-owned commercial banks
- Reorganize the rural financial system
- Integrate the operations of the financial industry and financial holding companies
- Improve the market exit system for financial institutions
- Establish deposit insurance system
- Develop bond market and expand direct financing
- Promote asset-backed securities and encourage financial innovation
- Establish multi-layer capital market system.