China should draw a lesson from the subprime mortgage crisis in the United States and strengthen risk control and supervision in its financial reforms.  Liu Mingkang, head of the China Banking Regulatory Commission, said China’s financial reforms aimed to open the market wider and the crisis would not change the “fundamental direction. The crisis reminded us that China’s financial industry must open step by step to the outside world. Otherwise, we will be incapable of coping with the accompanying risks and problems.”  “Supervision and monitoring is very important.”   Source: Xinhua

BIIA comment:  ‘Opening the financial services industry to the outside world’ as suggested by Mr. Liu Mingkang would be very opportune for China, especially in the area of consumer and commercial credit bureaus.  Unfortunately consumer and commercial credit bureaus are still in the public domain and opening this sector to private credit bureaus would do wonders for China’s credit granting community and economic development

BIIA Newsletter May – 2008 Issue