BEIJING is accelerating the transformation of its five socialist banks into commercial banking institutions and sending fact-finding teams to Hong Kong to learn from territory bankers.
The transformation is a key element of Vice-Premier Zhu Rongji's economic reform package, which includes a complete overhaul of the country's taxation and enterprise systems.
Policy-makers in Beijing are debating the Banking Law, which will provide the legal framework required for the transformation.
The banking reform, if realised, will turn China's five leading socialist banks - the People's Bank of China, Bank of China, Industrial and Commercial Bank, Construction Bank and Bank of Agriculture - into institutions comparable with foreign counterparts.
The PBOC will become a central bank to monitor the country's interest rates and money supply.
Under the present system, mainland banks bear ''dual identities'', undertaking normal banking businesses and being responsible for implementation of Government investment and financial policies.