China bank ICBC head warns recovery not solid
The global economic recovery is not built on solid foundations and Europe's government debt crisis is the biggest near-term risk.
By Agencies |
The global economic recovery is not built on solid foundations and Europe's government debt crisis is the biggest near-term risk, the chairman of Industrial and Commercial Bank of China warned on Wednesday.
The head of ICBC, the world's most valuable bank by market cap and China's biggest lender by assets, said the recovery remained fragile but emerging economies were helping rebalance the economy.
"While we are seeing financial recovery, economic recovery on a global scale, we must clearly recognise that there is not a solid foundation for world economic recovery," ICBC Chairman Jiang Jianqing told a meeting of the Institute of International Finance (IIF), held in Vienna.
"There are a lot of factors of uncertainty and there is still a long way to go for the world to achieve sustainable economic growth," Jiang added, speaking through a translator.
"The main risk we can see in the near-term is the sovereign debt crisis in Europe, and some advanced economies do not have a lot of space to manoeuvre in terms of their policies. With the exit of super-lax incentive packages, it is possible for us to see a reverse trend in the global recovery."
ICBC said last month its new lending growth had slowed sharply this year as Beijing moves to cool an overheating economy. The bank, whose shareholders include Goldman Sachs, has said it has little exposure to European sovereign debt and euro-denominated assets.
Jiang said on Wednesday emerging economies were taking key roles in rebalancing the global economy, and in the reform of the global financial system.
But he suggested differing agendas could hinder efforts to reach a global consensus on financial reform.
"We need to take uniform steps in terms of reforming financial regulation, however different countries have their own economic situations; different regions and different kinds of financial institutions have different kinds of challenges and risks," he said.
"International institutions formulating rules for regulatory reform should listen more" to developing states, their financial institutions and regulators, he said.
The head of ICBC, the world's most valuable bank by market cap and China's biggest lender by assets, said the recovery remained fragile but emerging economies were helping rebalance the economy.
"While we are seeing financial recovery, economic recovery on a global scale, we must clearly recognise that there is not a solid foundation for world economic recovery," ICBC Chairman Jiang Jianqing told a meeting of the Institute of International Finance (IIF), held in Vienna.
"There are a lot of factors of uncertainty and there is still a long way to go for the world to achieve sustainable economic growth," Jiang added, speaking through a translator.
"The main risk we can see in the near-term is the sovereign debt crisis in Europe, and some advanced economies do not have a lot of space to manoeuvre in terms of their policies. With the exit of super-lax incentive packages, it is possible for us to see a reverse trend in the global recovery."
ICBC said last month its new lending growth had slowed sharply this year as Beijing moves to cool an overheating economy. The bank, whose shareholders include Goldman Sachs, has said it has little exposure to European sovereign debt and euro-denominated assets.
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Jiang said on Wednesday emerging economies were taking key roles in rebalancing the global economy, and in the reform of the global financial system.
But he suggested differing agendas could hinder efforts to reach a global consensus on financial reform.
"We need to take uniform steps in terms of reforming financial regulation, however different countries have their own economic situations; different regions and different kinds of financial institutions have different kinds of challenges and risks," he said.
"International institutions formulating rules for regulatory reform should listen more" to developing states, their financial institutions and regulators, he said.
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