DFSA enters into Memorandum of Understanding with China's banking regulator

Notes and media contacts

For further information please contact:

Ms. Angharad Irving - Jones
Manager, Communications and Strategic Planning
Dubai Financial Services Authority
Level 13, The Gate
Dubai, U.A.E.
Tel: +971 (0)4 362 1661
Fax: +971 (0)4 362 0801

The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.

The Dubai Financial Services Authority (DFSA) is a central component of the DIFC, a financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.

David Knott was appointed Chief Executive of the DFSA on 1 June, 2005. He is a former Chairman of the Australian Securities and Investments Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).

The China Banking Regulatory Commission (CBRC) was first established in March 2003. It now has network of 36 offices in all major cities in China. Its functions include the formulation of supervisory rules and regulations governing the banking institutions; authorising the establishment, changes, termination and business scope of the banking institutions; conducting of on-site examination and off-site surveillance of the banking institutions, and taking enforcement action against rule-breaking behaviour; conducting fit-and-proper tests on the senior managerial personnel of the banking institutions; compiling and publishing statistics and reports of the overall banking industry in accordance with relevant regulations; and providing proposals on the resolution of problem deposit-taking institutions in consultation with relevant regulatory authorities. The CBRC is also responsible for the administration of the supervisory boards of the major State-owned banking institutions.

Liu Mingkang was appointed Chairman of the CBRC in March 2003. Mr. Liu has previously held various positions in both banking institutions and government agencies, since joining the Bank of China in 1979. He is also an Alternate Member of the 16th CPC Central Committee and Chairman of the Board of Directors of the People's Bank of China. Mr. Liu has been active in international grouping and academic institutions. He served as the Vice Chairman of the institute of International Finance (2001-2003). He is a guest Professor at the City University of Hong Kong, the Peking University, the Tsinghua University and the Fudan University. Mr. Liu serves as a member of the Financial Stability Forum Chairman's Advisory Council, Director of the Board of International Centre for Leadership in Finance (ICLIF), Bank Negara Malaysia.