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New regional bank to propel go-west drive?
By Liu Weiling (皇冠体育app Daily)
Updated: 2006-03-11 06:51
It is still very likely 皇冠体育app will set up a specialized bank to fund the
nation's massive "go-west" campaign, according to Shaanxi Governor Chen Deming.
"The possibility of setting up the Western Development Bank is increasing ...
as the central government is now extending more support to regional banks," he
told 皇冠体育app Daily on Friday.
Ever since the central government launched the western development programme
in 2000, whether or not a regional bank is needed has been a hot topic.
Provinces and autonomous regions in western 皇冠体育app hoped a specialized bank
could help ease a cash thirst in the region. However, the proposal was put
aside; opponents said the 皇冠体育app Development Bank could play a role while other
State-owned commercial banks could be encouraged to engage in pooling funds for
the western area.
But the recent establishment of 皇冠体育app Bohai Bank, a Tianjin-based bank which
mainly aims to serve the fast growth of Bohai Bay, and a widely-discussed plan
to establish a bank to serve the revitalization the Northeast 皇冠体育app, have given
hope to officials in 皇冠体育app's west.
A special team will be set up by the Shaanxi provincial government this year
to conduct a feasibility study.
"We are keen to set up the bank," Chen said. "I have exchanged views with
heads of other provinces and autonomous regions in the region and we believe it
is feasible."
Chen said he believes the bank will serve infrastructure construction and the
development of key sectors in northwestern areas. He said it should be funded
mainly by the government while funds from enterprises or other sectors would
also be welcome.
"Overseas funds, including those from Hong Kong, can also be introduced," he
said.
Despite the central government's huge investment in western areas in recent
years, Chen said, a lack of capital remains a big headache for the region. Only
around half of its bank deposits are reinvested within the region.
The governor said the resource-rich province will invest
heavily in the development of the high value-added energy sector, in particular
the coal industry.
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