Zhou Xiaochuan, Governor of the People's Bank of China. Photo: Retuers/Jason Lee

China financial institutions have benefited from openness and the country should take more steps in that direction, People’s Bank of China governor Zhou Xiaochuan said Tuesday in Shanghai, reports Bloomberg.

“Financial sectors are no exception,” Zhou said in regards to greater openness, adding that competition brings “pressure, dynamism, progress and prosperity […] high leverage, low capital and non-performing loans shouldn’t be tolerated, but being closed and having no competition often give way to low standards.”

Officials have indicated greater opening of the financial sector was on the agenda since at least last year, considering changes including one that would permit joint-ventures to expand into other areas besides stock and bond underwriting.