Two banks put their heads together

As China waits for acceptance into the European Bank for Reconstruction and Development, Jin Liqun, president-designate of the Asian Infrastructure Investment Bank, and other European finance leaders have agreed that the two banks will work together to improve economic collaboration.

The prospects of such a close working relationship are good, Jin said, one reason being that the two have common members.

China's Foreign Ministry said on Nov 6 that China's decision to join the European Bank for Reconstruction and Development was something that benefits all parties.

Hans Peter Lankes, managing director of corporate strategy at the bank, echoed that sentiment, saying he and his colleagues had traveled to Beijing for talks several times this year.

The new bank is "trying to get going very quickly", he says.

Lankes says the two banks have worked with other partners to try to set themselves up.

Mark Boleat, policy chairman of the City of London Corp, says: "China's application to become a member of the EBRD demonstrates the strategic importance of European partners in China's overseas development plans, especially in infrastructure investment.

"Given China's economic power and its ongoing commitment to open its markets and become more integrated within the global financial system, it is natural that China should seek to build new levels of cooperation with important institutions such as the EBRD."

China's membership of the EBRD could be a positive step that boosts trade between Asia and Europe and enhances collaboration between the EBRD and the AIIB.

The EBRD, the headquarters of which are in the City of London, plays a vital role in delivering finance to projects in regions of the world that most need investment, and China's involvement would no doubt be welcome.

Further engagement between Europe and Asia to address infrastructure needs is key to fostering economic growth on both sides, Boleat says.

"Building closer links with European-based institutions such as the EBRD is a logical step toward China's plan for greater global economic integration and complementary to the Belt and Road Initiative and development of the AIIB, which, as both the United Kingdom and Chinese governments reiterated during President Xi's recent state visit, will help unlock countless opportunities for British and European firms when trading with Asia."

(China Daily Africa Weekly 11/13/2015 page19)