State Council to discuss banking reforms

Further banking reform and the creation of a committee to coordinate policy among financial regulators are likely to top the agenda at a closed-door meeting of China's cabinet which starts Friday, the Wall Street Journal reported. The meeting, led by Premier Wen Jiabao, is set to focus on the overhaul of Agricultural Bank of China (ABC). A capital injection from the government plus the removal of bad loans from ABC's books is thought likely. The bank would then be on course to attract foreign investors and do a public listing. It has also been suggested that the cabinet will look at turning China Development Bank, a policy lender that has played a key role in the development of the country's bond market, into a commercial entity. The establishment of a super financial regulator, to put an end to regulatory infighting in China's increasingly intertwined banking, insurance and securities sectors, may be discussed as well.