To Encourage and Speed up the Development of Private Financial Institutions

According to the scales of the assets and foreign exchange reserves,China could be seen as a major player. However,considering the abilities in service,financial institutions competitiveness and the market development,China is still far from a financial power. In the future,besides the promotion of the commercialization reform of state-owned institutions,the system reform must include several key points such as: to relax further the constraints of market entry; to value,encourage and accelerate the incremental growth of private system,which is exclusive to the existing state-owned system; to permit more private capital access to the system; to encourage the establishment of regional mid-small institutions and speed up the development of regional finance; to guide the mid-small institutions focus on the provision of SMEs service,rural service and other emerging services.