NE Asian nations embrace bank privatisation

In the wake of extensive financial sector reforms and financial globalisation, bank privatisation has become the norm in Northeast Asian economies.
In recent years, policymakers in Korea, China and Japan have made increased efforts to revamp functions of their state policy banks, seeking ways to further initial public offerings, industry watchers noted.
The move aims to help improve governance, efficiency and performance of the state-owned banks. More important, a privatisation policy has become an important part of a move to transform the banking industry and become a global financial powerhouse, they said.
The financial industry is strategically important as a future growth engine. Northeast Asia has become the centre of the global economy -- the region accounts for 24 per cent of the world's population, 19 per cent of global production and 13 per cent of global trade, according to the latest data.
The widespread trend of privatisation is likely to continue, and it is crucial for the government to help establish an appropriate platform for the state policy banks to undergo a smooth privatisation process, experts said.