Chinese banks must put financial derivatives under control and enhance transparency in financial innovation that cater to the actual need of the country's economy,a top banking regulator has said.

The risks of derivatives should be manageable, and transparency was essential, said, Liu Mingkang, chairman of the China Banking Regulatory Commission (CBRC), at the annual meeting of the International Swaps and Derivatives Association in Beijing on Thursday.

Derivatives would be beneficial only when they were created at the right time, Liu said.

"We should offer suitable products to the right clients at the right time," he was quoted as saying by Friday's China Daily.

Failure to supervise financial institutions was one of the causes of the global financial crisis, he said.

(Xinhua News Agency April 24, 2009)