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Thursday, April 18, 2013

CDB governor Chen Yuan to set up BRICS Development Bank

Want China Times, Staff Reporter 2013-04-18

Chen Yuan. (Photo/CNS)

Chen Yuan, governor of the state-owned China Development Bank and the son of late Communist Party elder Chen Yun, is set to lead China's role in the establishment of the BRICS Development Bank, reports our Chinese-language sister paper Want Daily.

According to various internal sources at CDB, one of China's three policy-making banks, the 68-year-old Chen will resign from his role as bank governor to devote himself to setting up the BRICS Development Bank, agreed upon by the leaders of Brazil, Russia, India, China and South Africa their summit in Durban, South Africa in March. Hu Huaibang, the 57-year-old chairman of Bank of Communications, has been widely tipped as a candidate to take over Chen's role.

Chen graduated with a master's degree in industrial economics from the graduate school of the Chinese Academy of Social Sciences, and despite his low-key personality he is regarded as a strong choice to help China achieve its objectives with the BRICS Development Bank. He was in the first group of research students during the early years of the reform and opening up policy and he has been credited with creating the blueprint for Beijing's financial sector.

Formerly the executive deputy governor of the People's Bank of China, the nation's central bank, Chen was parachuted into the role of governor at China Development Bank in 1998, when poor management and a corrupt banking culture had brought the bank to the brink of collapse with more than 30% of its assets tied up in bad debt.

Chen has since re-established the foundations of the bank and instituted landmark reforms in the loan approval process, reducing bad debts and returning the bank to profitability.

As at the end of 2012, the bank's total assets reached 7.37 trillion yuan (US$1.2 trillion), with a nonperforming loan ratio of just 0.3%. 

References:

Chen Yuan  陳元
Chen Yun  陳雲
Hu Haibang   胡懷邦
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