Bank of China considering best method/timing to tap capital markets

HONG KONG (AFX-ASIA) - Bank of China president and chairman Liu Mingkang said the bank is currently considering the best method and timing to tap the capital markets.

	    However, he did not elaborate.

	    In the bank's annual report, Liu said the changes in the way the bank operates in Hong Kong will have special implications for its overall development.

	    "The most important development overseas in the medium term will be in Hong Kong, where we are the second largest banking group."

	    He said the restructuring of Bank of China's operations in Hong Kong will be completed by the end of the year and some international businessmen, who are already acting as advisors to the restructuring, will soon take up their appointments as non-executive directors of the restructured bank.

	    Liu said the bank plans to further improve its risk management by implementing the requirements proposed in the new Basel Capital Accord.

	    "We are determined to reduce the rate of non-performing loans year by year. I believe that the problem of non-performing loans will be solved substantially in the not too distant future."

	    Liu said the current year is a crucial one in the bank's move to revamp its operations.

	    "We are monitoring progress on every issue and, where necessary, devoting more resources to implementation."

	    By the middle of next year, the bank hopes to centralise its systems in China and, within three years, to unify its management information system globally.

	    The bank intends to develop new lines of businesses like custody, asset management and insurance, as well as push ahead with the expansion of its retail lending business.

	    Its investment banking arm, Bank of China International, will focus on large restructuring and IPO projects.

	    "It will open up new markets by establishing strategic alliances with leading international banks and by building up its own global distribution network," Liu added.

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