China's newly appointed banking regulator Guo Shuqing has lived up to his reputation of being a hardcore "reformist" in the first week on the job. Barely two days into his new position as chairman of the China Banking Regulatory Commission (CBRC), Guo has promised to introduce a slew of reforms to revitalize China's debt-ridden banking sector.

Like Us on Facebook

Speaking at the first press conference since his appointment last week, Guo explained that extensive efforts would be made to clamp down on financial risks. "We will put the prevention of financial risks at a more prominent position to make sure there won't be a systematic financial crisis," he said.

The 60-year-old banker vowed to rein in shadow lending and also curb funds to discourage property speculations.

Guo quipped that there is currently a lot of chaos in the banking sector because there are "different regulators, different laws, and different rules."  He promised that CBRC would coordinate with different regulators to create a comprehensive framework to cover the loopholes in rules for cross-market financial products.  

He also claimed that having the same set of rules for asset-management products would help all regulators to set higher standards, adding that such a move will help to bring transparency and expose shadow financing.

Guo further noted that the CBRC is paying close attention to the "risk of a real estate bubble."

Guo cemented his reputation as a reformist during his stint as a stock regulator in 2011-12. During his 17 months on the job, Guo ordered 80 major directives that supposedly brought sweeping changes to the Chinese stock market. His penchant for brining fast and quick reforms earned him the nickname "Whirlwind Guo."

Banking experts believe that Guo has a real task on his hand, with China's banking sector burdened by a mountain of bad debts and non-performing assets (NPA's). Many have blamed the state's intervention for the current pile of bad debts. 

Tagschina, Guo Shuqing, China Banking Regulator, Banking Regulator