Ex-Central Bank Chief Calls for Nationwide Enterprise Balance Sheet Disclosure System

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The former governor of the People’s Bank of China (PBOC) has called for greater development of financial statistical systems in order to increase transparency and abet credit efficiency.

Dai Xianglong (戴相龙) recommends that the Chinese authorities “establish a national corporate balance sheet statistics announcement system, develop non-bank financial institutions, and convert more social funds into enterprise capital.”

Dai made the remarks on 13 December at the 2021 iFeng Finance Summit (2021凤凰网财经峰会) held in Shanghai.

Dai said that China needs to establish a social finance system that effectively integrates both indirect and direct financing, in order to “comprehensively raise the efficient usage of social funds.”

As of the end of last year the banking sector accounted for 90.5% of China’s financial institution assets, while the share of the insurance sector was 6.6%. Equity financing accounted for a mere 2.9% of social financing.

The former PBOC governor also called for “assessment and summary of the comprehensive business trials of large-scale commercial banks, balancing of pros and cons, and the proposal of basic principles, organizational forms, development steps and regulatory provisions for the prudential undertaking of comprehensive operations by China’s large-scale commercial banks in future.”

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