World Bank, China PBoC in talks on interest rate liberalisation

BEIJING (AFX-ASIA) - World Bank officials have been holding talks with officials at the People's Bank of China, the central bank, about interest rate liberalisation, World Bank China country director Yukon Huang said.	    Talks have focussed on what kind of policies need to be in place and what kind of institutions need to be strengthened in order for the government to move forward in liberalising interest rates, he told journalists. 	    But he emphasised that the process of liberalisation in China will take a long time and that the World Bank has only been asked to provide assistance to the PBoC on this aspect of financial reform.	    Huang also said the bank is helping China strengthen some of its small to medium sized banks, some of which are private, as these institutions will play a greater role in the economy after China joins the WTO.	    It is also providing support in the field of bank supervision, an area which will become increasingly important as the financial sector becomes more competitive. 	    World Bank vice president for the East Asia and Pacific Region Jemal-ud-din Kassum said the government is aware of the importance of a competitive financial sector, but said that although an important start has been made, much remains to be done.	    Accession to the WTO means the pace of reform will have to be accelerated, he said.    

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