China Banking Regulator called on the country's banks to prepare for currency fluctuations, as more flexibility will be possibly introduced, Bloomberg reported. China wants banks to get ready for more volatile currency trading by learning how to use derivative products that have been introduced to help manage risk, said Bloomberg. Central Bank Governor Zhou Xiaochuan on Sept. 16 stepped up pressure for lenders to prepare for currency changes, saying that otherwise they'd ``move too slowly.'' ``The chances of yuan appreciation are greater now than ever,'' said Ben Simpfendorfer, China strategist at RBS in Hong Kong. China's government ``is increasingly comfortable that they've curbed growth in the first quarters this year and is now focused on the trade balance and liquidity, and the currency plays a greater role in that.'' By developing risk management ``banks' competitive advantages in foreign currency transactions will likely increase the fee income in this area,'' Liu said. ``Banks can join the growth of the capital market so developing relevant capabilities and strengthen their asset management and wealth management skills.''