15 August 2007

Dr Li Kouqing, Deputy-Director General, Asia-Pacific Finance and Development Centre, Shanghai, and Mr Ken Waller, Director, Melbourne APEC Finance Centre at Monash University.

Melbourne APEC Finance Centre (MAFC) at Monash University hosted a delegation from China's banks and regulatory agencies recently for a discussion of the challenges in implementing the international banking accord Basel II.
The purpose of Basel II is to create an international standard that banking regulators can use when creating policy frameworks with regards to how much capital banks need to set aside to guard against financial and operational risks.
Ken Waller, Director of the Melbourne APEC Finance Centre said the objective was to identify targets and resources for programs to enhance China's capacity to improve governance and risk management in the banking sector.
"China is growing so fast that its capacity to effectively regulate its finance sector is being stretched," Mr Waller said.
"The dialogue provided a snapshot for participants from Australia and the region on where China is in relation to regulating its banking activities."
Broad ranging discussions included Australia's experience in reforming its financial services sector, how to manage cultural and institutional change and assessments of China's experience in implementing Basel II, both through the eyes of  banking practitioners and regulators.
Leader of the Chinese delegation and Executive Director of the Asia-Pacific Finance and Development Centre, Dr Li Kouqing said, "not only is this a significant opportunity to meet Australian regulators and bankers, it also brings Chinese bankers and regulators from disparate agencies together in a single forum to discuss respective positions and identify common needs".
Monash University's Deputy Dean of International in the Faculty of Business and Economics, Professor On Kit Tam, chaired plenary and one of three working groups, while Professor Michael Skully, Chair of Banking in the Department of Accounting and Finance, presented on Banking Governance and Risk Management.
Following the dialogue, a site visits program introduced the Chinese delegation to ANZ, NAB and Standard and Poor's in Melbourne, Federal Treasury and DFAT in Canberra, and the Reserve Bank of Australia, CBA, Westpac, Macquarie Bank and HSBC in Sydney.
The program was supported by the Australian Treasury and China's Ministry of Finance, and sponsored by the Australian and Victorian Governments.