GO
Loading...

China must accept global banking standards: Ex-UK PM

China needs to become a full member of the global banking system to deal with issues like shadow banking, Gordon Brown, former Prime Minister of the UK, told CNBC.

"It's in China's interest to argue that they should be part of this world financial system where they accept similar rules to the ones accepted in the US and Europe, and, in the long term, China is being protected," he said in an interview at the World Economic Forum.

Gordon Brown
Getty Images
Gordon Brown

(Read more: China bank chief slams door on burned investors)

He is not the first to raise concerns about hidden difficulties in China's banking system.

Brown caused consternation last year when he warned of another financial crisis in a New York Times article.

(Read more: We are heading towards the next crash: Gordon Brown)

"There will be another crisis unless there is coordination and unless there is action because unless you have common financial standards across the world then there will be one regime in one area and perhaps many more that will try to escape the requirements for supervision and really for having credible, accountable, transparent policies," Brown said.

"We will look around a few years from now and say why did we not learn the lessons of the financial crisis of 2008"

- By Catherine Boyle, CNBC. Twitter: @cboylecnbc.

Videos

Latest Special Reports

  • With the world becoming more interconnected, it’s getting harder to anticipate and manage global risks. We take a look at some of the biggest risks and ways to mitigate them.

  • From family-run companies to public companies with family ownership, we tackle challenges and rewards facing family businesses.

  • Inside the market's biggest sectors with a look at the trends, companies and trades netting profits for investors.

World Economy