China's central bank will come up with accounting standards for financial institutions and tighten regulatory and supervisory activities, one of its executives says.

Chen Yuan, deputy governor of the People's Bank of China, said there is "an urgent demand for overall financial reform as our socialist market-oriented economic system further develops."

The project, part of a World Bank-sponsored program to improve accounting standards in China, extends work already done by the Ministry of Finance. Mr. Chen said the project "will accelerate the process of financial reform."

The central bank has awarded Price Waterhouse two threeyear contracts totaling $7.15 million to aid in the project.

Price Waterhouse will develop specific accounting standards for financial institutions and establish a "revised regulatory framework." The Chinese central bank has a staff of more than 170,000 and supervises more than 150,000 banking offices and financial institutions.

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