Zhu min: The core of China's reform should be to change the mechanism

In a recent media interview, Zhu Min, the managing director of the International Monetary Fund, said the renminbi's exchange rate should adhere to market-oriented, and that the core issue was to change the mechanism, not just the level of exchange rates. The IMF also strongly supports China's exchange rate reform. China's banking reform needs to deepen journalists: China's banking sector reform since 2003 has come to an ending.　　In your view, the next step, if the institutional level, to continue to promote this reform will have to continue to increase efforts, such as the big stake in Huijin? Zhu min: China's banking reform has been successful, and it is now increasingly recognized internationally because it fundamentally changes the banking system and mechanisms, strengthens governance mechanisms, enhances transparency and increases risk management.　　It is precisely because of our entire banking reform, just to do in the front, so this financial crisis, the impact on us is relatively small.　　Banking system reform, there is also a very important task, on how to strengthen the financing of SMEs in the reform and development of financial institutions, how to strengthen the rural micro-finance reform and development, so that China's most extensive foundation-rural and farmers can effectively use the financial system. For a large agricultural country such as China, if rural and agricultural systems cannot have effective financial services, then our entire financial system should be said to be unsound. Now that the Basel agreement is Ⅲ, the agreement Ⅲ a series of new requirements for capital. The capital adequacy ratio of domestic banks is still very high in terms of figures, but the ⅲ of capital adequacy is not only the problem of capital adequacy rate, but also the question of the quality of capital, the question of transparency, and how to classify capital with accounting standards.　　This puts forward new requirements and standards for Bank management.　　Reporter: Recently ping An bought the deep Development Bank, the Bank of Communications, Beijing Bank and the Bank of China are actively taking stakes in some insurance companies, so what do you think of China's financial industry's comprehensive management prospects and need to pay attention to some problems? Zhu min: About the "comprehensive management" in the banking industry actually went a lot of twists and turns. Since the 1930 crisis, the integrated operation is not allowed. Then from the 1970 's, 1980 's after the United States gradually relaxed, in the case of not allowing comprehensive operation, in fact, allow the coexistence of integrated management.　　Then since 2001, especially since 2003, China's rapid economic development, especially offshore business, financial derivative products, development is very rapid, this is a very important aspect of the crisis. Journalist: Remember that when the financial crisis raged the most serious, you put forward a very new topic, to the global financial industry, "slimming."　　Does China's banking industry also need to "lose weight"? Zhu Min: The concept of "downsizing", which we usually talk about "deleveraging", depends on your leverage ratio, not directly related to the size of the bank. In view of this economic crisis, foreign banks have a big problem, is the leverage ratioToo high, it can take very little capital to bear high risk, once the impact, it is more prone to volatility and risk.　　So this is a very important question, the problem is its leverage ratio, not its absolute size.　　For scale, it is important to maintain the size of a few things, the first to have a good enough debt structure, you need to have enough savings deposits, rather than relying entirely on short-term funds, to have more stable assets, at the same time, there is not too much financial derivatives trading business. IMF supports China's exchange rate reform correspondent: You work in the IMF, you will contact a lot of financial organizations around the world, the issue of the RMB exchange rate, including the appreciation of the renminbi, the international controversy more, then from the situation you now grasp, the current world opinion on this issue is what kind of view.　　In addition, you think that China's exchange rate may be after the change, the next direction is what? Zhu Min: The IMF is not an assessment of the level of the exchange rate of a Member State, we mainly look at the equilibrium level of exchange rate, especially the medium-term equilibrium level, is not in line with the basic situation of a country. So from this perspective, we encourage and support the efforts of the Chinese government in promoting exchange rate reform. As you all know, the domestic exchange rate reform should say or try to move in the direction of the market, but also increase its volatility, the level of exchange rate is adjusted, so this is universally recognized internationally. The core issue is to change the mechanism, not just the level of exchange rates.　　Since the level of exchange rate is always fluctuating, the key is to change the mechanism to a floating exchange rate based on this market. The downside risks to the world economy are increasing journalists: since the European debt crisis began, many economists have said that it is possible that the world economy will enter a two-dip process. I'd like to ask your opinion.　　Besides, do you think the Chinese economy is facing the same problem? Min: The global economy is slowing down, and overall, exports, industrial production, including the MPI index, are all slowing down. But at the same time, the global economic recovery is still ongoing, and growth is still ongoing, which is two parallel processes. Under the leadership of G20, the whole economy is still recovering. I think it's a big trend. So now we don't see the possibility of two dip.　　But the economy is slowing down and the downside risks are rising. So when it comes to China, it's different. One of the biggest characteristics of this crisis is the recovery of multiple speeds, that is, the overall growth rate of the developed countries is slow, that is, 2% to 2.2%, 2.3%, and developing countries and emerging economies, the growth scale reached 6.5%, or even 7% to 8%. In this way, an emerging economy has developed rapidly. So the global economy now faces a big problem: the developed economy and the new economy are in two completely different economic cycles, one is going down, one is going up; one is to stimulate, one is to have proper control,To cool down, this is two completely different economic cycles. So I find it difficult to use the difficulties of developed economies to directly compare the problems of China's economy.　　This is two different concepts. Interviewer: You mentioned that 5% of the percentage of developing countries voting in the IMF may not be enough, and it will continue to improve. But the crux of the matter is that it is more difficult to cut other people's voting rights. Zhu min: There are mechanisms. Because the IMF is an international organization based on share. Share should reflect the status of this member country in the overall world economy. Status is not entirely GDP, it also includes its trade. Because the IMF is responsible for macroeconomic stability and current account balance. So its trade, its capital, its capital flows and fluctuations, its GDP, all have a comprehensive index. Therefore, it is a process to change the overall index, changing the quota of different Member States accordingly. NetEase）