CDB: an in-depth study that earns interest

Updated: 2013-10-17 17:24

By Zou Lixing (chinadaily.com.cn)

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Due to the severe situations brought about by the international financial crisis and economic downside, the unfavorable and uncertain factors of external environments are increasing. As a big developing country, China has been staying in a primary stage of socialism for a long time, with a large population, shortages in resources and unbalanced development.

The next period is critical for China to realize industrialization, urbanization and modernization of the national economy. Therefore, we must intensify and improve macro-economic control in a practical manner, apply a market economy development mode under government leadership, and attach great importance to the position and role of development-oriented finance in new situations.

For a long period in the future, infrastructure, basic construction, strategic industry, environmental protection, poverty reduction, disease control and rural development will be the concerns of China's government and the long-term objectives of CDB as a national development-oriented finance institution.

Anyway, the role of development-oriented finance is quite important and irreplaceable. The future development of CDB should focus on the medium and long-term policy-related businesses, pursue a development route different from that of commercial banks, maximize favorable factors and minimize unfavorable ones, and combine banking characteristics such as commercial transformation and medium and long-term bonds with national development strategies. It should also strive to continuously improve the market operation mechanism for development-oriented finance, and fulfill differential development of commercial banks. Besides, differential regulatory policies, incentive mechanism and legal support for development-oriented finance should be prepared based on the improvement of commercial banking to provide a legal guarantee for the long-term sustainable development of CDB.

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