The financial crisis has led to a comprehensive rethink on financial supervision. The first round of the China-US Strategic and Economic Dialogue was closed on July 28 in Washington. Chairman Liu Mingkang of the China Banking Regulatory Commission (CBRC) said in the interview that China and the United States would deepen the cooperation in cross-border financial supervision, which was one of the important results achieved in financial sectors during this economic dialogue.

Liu said that the mutual penetration between China and the US in banking sector developed rapidly in recent years. Industrial and Commercial Bank of China, Bank of China, Construction Bank and China Merchants Bank had set up branches in the US, and business had been already carried out in New York, San Francisco and Los Angeles.
Meanwhile, as foreign-funded banks in China, the American banks had large investment and asset scale in China. Therefore, the two sides needed to improve the effectiveness and quality of cross-border supervision and cooperation.

He said that in cooperation of cross-border banking and financial sectors, especially in supervision cooperation, China officially initiated the two countries to carry out supervisory cooperation from the management and disposal of cross-border crisis. The two sides had made clear the responsibilities and obligations in cooperation of cross-border financial supervision and management. In addition, the two countries should frequently exchange the experience in macro-prudential supervision and micro-prudential regulation as well as the consideration to crisis.

He said, "Specifically speaking, as supervisor in parent country, China will report the operating conditions of large banks, strategic changes and discovery of risks to the host countries, including the US. At the same time, the US banking supervisor should provide China with the risk description of large US parent banks which have branches in China equally, timely and accurately, especially the process report about the disposal of risk assets in dealing with the financial risk and the improved situation about the management and strategy of risks.