By XIN Yuan

Chinese President Xi Jinping on Monday called for the swift establishment of a Shanghai Cooperation Organization (SCO) development bank, saying it would bolster economic cooperation and provide stronger financial support for member states.

Xi made the remarks at the 25th meeting of the SCO Council of Heads of State in Tianjin.

China first proposed the bank in 2010 to promote regional trade and greater use of local currencies. At a meeting in Dushanbe that year, then premier Wen Jiabao urged deeper financial cooperation, expanded local currency settlement, and joint exploration of an SCO development bank.

The initiative has remained on the agenda for years and gained momentum in 2025. In June, SCO finance ministers and central bank governors met in Beijing and reported "substantive progress" on the bank, agreeing also to form a financial think tank network and expand local currency settlement. A July foreign ministers' meeting in Tianjin signaled consensus on financing mechanisms.

ZHU Jiejin, deputy director of the Center for the Study of the United Nations and International Organizations at Fudan University, told Jiemian News the launch of the bank would be a landmark event if achieved this year.

"It would greatly promote infrastructure financing across SCO member countries and enhance their economic development," Zhu said. He noted that the proposal responds to strong demand for capital in the region. "Countries such as Russia and Kazakhstan have significant potential in infrastructure and energy projects, but much of it has not been realized due to financing shortfalls," he added.

At present, financial cooperation among SCO members is conducted through the SCO Interbank Consortium, established 20 years ago. Its members include China Development Bank, Kyrgyzstan's Eldik Bank, Pakistan's Habib Bank, Russia's VEB.RF, Tajikistan's State Savings Bank, Uzbekistan's National Bank for Foreign Economic Activity, Belarusbank, and others, with the Development Bank of Mongolia as a partner.