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  • Sep 20, 2014
  • Updated: 8:09am
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ECONOMIC DEVELOPMENT

A dog could run China’s banking system, says former statistics bureau spokesman

Yao Jingyuan predicts economic growth in 2014, but has harsh words for China's banks

PUBLISHED : Tuesday, 24 December, 2013, 7:10pm
UPDATED : Wednesday, 25 December, 2013, 1:10pm

The former chief economist and spokesman of China’s National Bureau of Statistics estimated that the mainland’s economy grew 7.7 per cent in 2013, while also making a scathing criticism of China’s banking industry, likening it to an automated system that even a dog could successfully run.

“Banking in China has become like a highway toll system,” Yao Jingyuan said at a Saturday summit on China’s economy held at Nanjing University. “Banks charge every time money goes through them.

"With this kind of operational model, banks will continue making money even if all the bank presidents go home to sleep and you replaced them by putting a small dog in their seats.”

With this kind of operational model, banks will continue making money even if all the bank presidents go home to sleep and you replaced them by putting a small dog in their seats
Yao Jingyuan

Yao added that there were no longer any real bankers in China, and that most bankers had become “freeloaders” who latched onto the wide profit margin they could enjoy by taking advantage of interest differences between deposits and loans. 

Apart from critising the banking system, Yao estimated that China’s GDP grew at 7.7 per cent in 2013, but added that the country’s economy would face several major issues in the near future.

Chief among these were an eventual economic downturn and a surplus of production in numerous service industries including steel, cement and shipbuilding - all of which suffered financial losses at the end of 2013 due to excess output.

Under current circumstances, Yao added that university graduates in the upcoming year would have great difficulty finding employment opportunities in China’s service sector.

China’s creative talent was also discussed at the summit. Cornell University professor Soumitra Dutta said that China’s innovation output index ranked 25th in the world, but added that Chinese entrepreneurs needed to improve their tolerance of failure and take on greater innovative risks if they wanted to attract more venture capitalists.

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pgrath1
A dog would be better than the foxes who run it now.
impala
A dog could run China’s banking system better.
josephbrahmana
They will eat the dog... No?
shouken
If dogs are tastier than beef and lamb, why not? You eat chicken ... No?
daily
Finally, someone with the balls to confirm that a lot of dogs are running the banking system...........bet there are other dogs running a lot of other things in China too...........
sipsip1238
Correction, only a dog should be allowed to run the system, who or what else would be more obedient.
singleline
According to Michael O'Sullivan,
'In business, risk-taking – and its close relation, innovation – cannot be imported. Some things must be homegrown.'
(****www.project-syndicate.org/commentary/michael-o-sullivan-says-that-other-peripheral-eurozone-countries-cannot-replicate-ireland-s-recent-economic-upturn---nor-should-they-want-to#DKGMFACW3hRyE3qm.99)
lpc1998
Dogs are clearly better than banksters who could hold not only the entire nation to ransom, but also the whole world. At least the former does not have criminal intents.
A banker should not be reckless gambling with depositors’ money and, in the process triggers one financial crisis to another.
China has a very stable banking system which is disliked by the financial market predators because they could not profit fabulously from the system by ripping off innocent bank customers and other people.
Economic reforms in China should not be about dismantling China’s successful socialist market economy and replacing it with the capitalist market economy that would eventually benefit mainly the top 1%.
Brit_in_China
Completely agree. Banking should be boring. Money should be created in accordance with a national business plan and distributed to the sectors that need the money to allow a country to achieve its goals. China's system is mighty boring; but at least the sectors that need money get money. Money should be created and controlled by the peoples' representatives and applied to the benefit of all. The European style banking that most of the rest of the world 'enjoys' is utterly corrupt and exists only to make a few hundred already filthy rich people even richer. The banksters detest China's banking system because it is by the people for the people.
scmp04
But then they would eat the dog.......
Maybe a monkey could run the bank? No, that would go in the pot too.......
Civet cat? Same........
Ant eater? Same.......
So really, people are the best choice to run the banks.
rpasea
Haha....a dog could run HKMA as well with the USD peg. Sorry Norman, you're out and replaced by Fido.
 
 
 
 
 

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