DOMESTIC financial institutions should become more international if Shanghai aims to become a global financial center, Vice Mayor Tu Guangshao said yesterday.
Innovation in the financial sector should be encouraged more and there should also be a greater tolerance of failure, Tu said during a group discussion with deputies of the Shanghai People's Congress.
"Domestic financial institutions should put quality of business rather than focus on size at this current stage of development," Tu said. "One of the qualities is whether they have enough international business to help lay the path for Shanghai to become a global financial hub."
He cited the Bank of China, whose global operations account for 30 percent of its total business, as the best in meeting his definition.
Tu also suggested the rising number of domestic banks should develop different characteristics and attract a more diversified clientele, instead of competing for the same market and seeing growth stagnate.
Tu also pushed for innovation as that is the lifeline of Shanghai's economic growth, especially for the financial sector.
"We should break from the tradition and try to meet the new demands emerging in Shanghai's path to becoming a global hub of finance, shipping and trade," Tu said.
He also urged financial institutions to help smaller companies, sunrise industries and international business with their needs.