Zhu Xian, Vice Chairman and Secretary-General of the International Finance Forum (IFF) and former Vice President of the World Bank: Fintech will become a new engine to promote financial transformation and upgrading

　　China News Service, October 15 (Li Qiuying) "The world is undergoing major changes unseen in a century. Opportunities and challenges coexist. Fintech will become a new engine to promote financial transformation and upgrading." Deputy Director of the International Finance Forum (IFF) President and Secretary-General Zhu Xian, former Vice President of the World Bank, said in a speech at the first New Finance Youth Forum with the theme "New Era, New Finance, New Youth" on the 15th.

　　Zhu Xian pointed out that since 2020, the new crown pneumonia epidemic has had a profound impact on the global economy and finance. The global economy has experienced the worst recession since World War II. In order to maintain the normal operation of the economy and society, many countries’ fiscal expenditures have increased substantially. The deficit continues to rise. The Fed’s balance sheet has risen from more than 800 billion US dollars before 2008 to around 8 trillion US dollars today. The ratio of US federal debt to GDP has surpassed the highest record created during World War II.

"If it is not handled properly, it may cause large-scale global debt unsustainability, and even cause a new round of debt crisis and serious global macroeconomic imbalances."

International Finance Forum (IFF) Vice Chairman and Secretary General, Former Vice President of the World Bank Zhu Xian, Photo by Zhang Hengwei

　　Zhu Xian also pointed out, “Although there are still many uncertainties in the global economy, the crisis is still in danger, because the epidemic will gradually be controlled, and the economic recovery after the epidemic will also provide greener and sustainable development for emerging market economies and developing countries. Opportunities for transformation."

　　He emphasized that finance must rely on the power of science and technology to further optimize the ability to serve the real economy, and "promote financial innovation under the mode of prudential supervision."

　　At present, the trend of financial industry's de-realization and blind expansion has been fundamentally reversed, and financial risks are generally controllable. However, how to further overcome obstacles and allow valuable financial resources to flow smoothly to the real economy and prevent the occurrence of systemic financial risks is a financial problem. Arduous task.

"To overcome these challenges, the innovation of financial technology is inseparable. In this process, the majority of young people have a lot to do." Zhu Xian said.

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