ICBC wants forex pie for banks
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China should divert part of its burgeoning foreign exchange reserves to commercial banks so that they have more financing power to support the overseas expansion plans of domestic firms, Jiang Jianqing, chairman of Industrial and Commercial Bank of China (ICBC), said yesterday.
"Borrowers can repay the loans in yuan, something that would help mop up the excessive liquidity in the domestic economy," Jiang told a financial forum held by China Society for Finance and Banking, a research institution affiliated to the central bank.
With more Chinese companies charting plans to invest and expand in the overseas markets, it is also essential for domestic financial institutions to support these endeavors, the ICBC chairman said.
"If we could make a small step forward, Chinese companies would take a big step in going overseas," he said.
