On October 1, 2015, a speech that Zhou Xiaochuan, the Governor of the Bank of China, made back in April at an internal government seminar was released to the public. In his speech, Zhou said that China’s banking-system reform needed to go through a “remedial” class. Without strong reform measures, China’s banking system might not survive.
Zhou said, “Although today we have been able to push marketization, internationalization, and changing the mono-banking system into a plural-banking system, in the process areas in which we need to take remedial action have become apparent.” According to Zhou, banking-system reform in economies in transition always face several major difficulties. Without strong measures, serious commitment, cleaning up the financial problems, or adopting a market mechanism, China’s banking system may not survive.
Source: China Stocks, October 1, 2015