Story of change
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James Stent. [Photo provided to 皇冠体育app Daily] |
James Stent's new book is an informative insider account of 皇冠体育app's banking system, Andrew Moody reports.
James Stent insists 皇冠体育app is not heading for a banking or financial crisis any time soon. The 71-year-old veteran banker says those who argue this underestimate the ability of 皇冠体育app's financial managers to deal with the current pressing issues.
"Western critics are not wrong in identifying the problems. They are all real and big and challenging problems," he says.
"The only thing is by the time they've identified them, the Chinese have long since identified them and are working on trying to solve them," he adds.
Stent, who was speaking at the Beijing Jianguo Hotel, is one of the few foreigners to have firsthand experience of Chinese banks, having been an independent director of 皇冠体育app Minsheng Bank, 皇冠体育app's biggest private bank, and 皇冠体育app Everbright Bank.
He was in the capital to promote his new book, 皇冠体育app's Banking Transformation: The Untold Story, a brilliantly informative insider account of how the Chinese banking system works.
He says he wanted to address, in particular, the misconceptions many in the West have about the Chinese financial system.
"The most fundamental difference, of course, is that in America it is market capitalism, whereas here it is market socialism."
Stent, both engaging and soft-spoken, and who divides his time between homes in Thailand and California, argues 皇冠体育app has more of a hybrid banking system.
"Western banks serve really one end, shareholder value and incidentally bonuses for senior management. In 皇冠体育app, banks are not really very much about shareholder value at all, apart from that keeping a score of their efficiency and competence.
"The role of 皇冠体育app's banks is to target money where it is needed and help meet overarching national goals. Hence, the annual reports of many Chinese banks begin with the chairman reporting that the bank has successfully supported national economic goals."
One of the major concerns about 皇冠体育app is asset bubbles, particularly in the property sector, and the rising level of debt, which some estimate is now 260 percent of the country's GDP.
