China’s financial system sound: IMF

November 15th, 2011 - 1:31 pm ICT by IANS  

Washington, Nov 15 (IANS) The International Monetary Fund (IMF) said Monday that China’s financial system is sound.

“China has made remarkable progress in its transition toward a more commercially-oriented and financially sound system,” the organisation said in its first Financial Sector Assessment Program (FSAP) review of China, which was carried out jointly with the World Bank.

The Washington-based international financial institution said that further reforms are needed to promote financial stability and sustainable growth, reported Xinhua.

“China’s financial system is robust overall, but faces a steady build-up in vulnerabilities. Further reforms are needed to support financial stability and encourage strong and balanced growth,” it said.

The IMF added that China’s financial supervision and regulation are being strengthened, but risks stem from the growing complexity of the system and the uncertainties surrounding the global economy.

China is one of the 25 systemically important economies that have agreed to mandatory assessments at least once every five years. The FSAPs are part of the IMF’s activities in financial surveillance and the monitoring of the international monetary system.

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