Banking Overload

China, as it puts the final touches to the preparations for the Beijing Olympics, is leaving nothing to chance.

The China Banking Regulatory Commission (CBRC), the banking watchdog, stated that banks must upgrade their information technology to prevent risks of system collapse caused by bank card transaction and stock trading peaks during the upcoming Olympics.

There is a risk that a spike in card use and stock trading is likely to overload the country's banking system, said Guo Ligen, vice-chairman of CBRC.

He announced that the CBRC will launch an inspection of major banks' information systems from February to July.

There have been system breakdowns at five commercial banks over the past year, mainly due to overload.

Guo said:

"Problems occurred at those banks with relatively advanced information technology and risk control ability, some happened even at a crucial moment.

It revealed the fragility of our banking information system."

Contingency plans are needed to be in place before the expected spike in transactions in August.