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The safety, efficiency and stability of the Chinese banking
sector has strengthened the national economy. China's central
bank has increased supervision of the banking sector to
improve its management and overall quality.China's accession
into the World Trade Organization has forced the country
to improve banking management efficiency and international
competitiveness.
Foreign financial institutions, especially foreign-funded
banks, have become a vital component of China's banking
system. Instead of being counterparts, foreign banks and
Chinese banks are now more like partners. In China efforts
to promote partnership between the two are underway.
In 2004 foreign banks had set up 200 operational entities
in China, and had launched more than 100 banking products.
Thirteen foreign banks have won regulatory approval to provide
online banking services. Foreign financial institutions
brought in new technology that resulted in positive changes
for the development of China's banking sector.
A major challenge facing local Chinese State banks in 2005
is to maintain their asset quality and avoid the emergence
of new bad loans. It is also crucial for them to control
costs, enrich their profit sources and implement reforms
in their local branches. Apart from the banking sector,
the capital market is also under increasing pressure from
market-oriented reforms.
Press
Los Angeles Times
China
Aims to Curb Underground Loans; It raises benchmark interest
rates for the first time in nine years in part to spur use
of state-run banks.
Don Lee
October 29, 2004
Financial Times (London)
Lack of Banks/ Money Transfer Offices in Mainland China
April 1, 2005
The McKinsey Quarterly
What Chinese Consumers Want from Banks: Customers in China Seek Better Services
June 29, 2005
Legislation
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China