1 billion the total loans amounted to rmb 23744

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Unformatted text preview: was formed as a joint-stock commercial bank in September 2004. The share of CCB began trading on the Hong Kong Stock Exchange on 27 October 2005. As of June 30, 2005, the total assets of CCB amounted to RMB 4,224.1 billion, the total loans amounted to RMB 2,374.4 billion and the total deposits amounted to RMB 3,781.3 billion3. CCB has the smallest outstanding loan balance and NPLS ratio among the four state-owned commercial banks. 2 Data source: website of Industrial and Commercial Bank of China, www.icbc.com.cn 3 Data source: website of China Construction Bank, www.ccb.com.cn 研 究 所 年 報 132 Bank of China (BOC) Before the bank reform of 1994, BOC is China’s primary foreign exchange bank and functions as the overseas agent of China’s central bank—People’s Bank of China (PBoC). BOC handles international accounts and deposits, foreign exchange, international syndicated loans, and other services such as trust, investment, leasing, and business consultancy. After reform, BOC was converted into a wholly state-owned commercial bank. On August 26, 2004, Bank of China Limited was formally incorporated in Beijing as a state-controlled joint stock commercial bank. By the end of 2005, the total assets of BOC amounted to RMB 4,742.8 billion, the total loans amounted to RMB 2,151.9 billion, and the total deposits amounted to RMB 3,703.84. Agricultural Bank of China (ABC) Founded in 1979, ABC serves as the primary lender to the agricultural sector and is responsible for examining and approving state funds to support the agricultural industry. Additionally, ABC purchases agricultural products for the State and supervises the rural credit cooperatives. By the end of 2004, the total assets of ABC reached RMB 4,013.77 billion, the total loans was RMB 2,590.07 billion, the total deposits was RMB 3,491.55 billion and the total operation profit of the whole year was RMB 31.97 billion5. ABC seems to have been the most “conservative” of the four SOCBs. Due to its agricultural based lending practices, among the four SOCBs, ABC has the largest balance of NPLs. Besides the enormous size of SOCBs in terms of assets, the four SOCBs control about 70 percent of China’s banking market and have generated around 80 percent of total non-performing loans (NPLs) in China’s banking system. In addition to the huge amount of NPLS, compared with international banks, Chinese banks exhibit weaknesses in the economies of scale, productivity and profitability, risk management skills, international network, services, modern banking products, technologies, staff quality and incentives, and corporate governance, etc. On the other hand they show strengths with their huge domestic network, long-established customer relationships, sound understanding of China markets, support from the government, and cultural recognition from domestic people, as well as high liquidity. Joint�Stock�Commercial�Banks In order to promote competition among banking institutions and hence to improve efficiency, Chinese governm...
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This document was uploaded on 03/12/2014.

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