Bank of communications china merchants bank citic

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Unformatted text preview: ent set up a passel of Joint Stock Commercial Banks during the period from 1984 4 Data source: website of Bank of China, www.boc.cn 5 Data source: website of Agricultural Bank of China, www.abchina.com Non-Performing Loan of China’s Banking System 133 to 1993. Bank of Communications, China Merchants Bank, CITIC Industrial Bank, Guangdong Development Bank, Industrial Bank, Shenzhen Development Bank, etc. were established between 1987 and 1988. After 1992, another batch of JSCBs were established, including Everbright Bank of China, Huaxia Bank, Shanghai Pudong Development Bank, China Minsheng Banking Co., and so on. At present, there are totally 12 JSCBs in China, which accounts for 16 percent of assets of the whole banking system. As of May, 2004, the total assets of JSCBs amounted to RMB 4,410 billion, the total loan was RMB 2,790 billion and the total deposit was RMB 3,790 billion. Most of JSCBs are partly state owned. For some JSCBS, the central government or the respective provincial or municipal governments still hold a controlling stake. The share of some JSCBs has been traded on the stock exchange, including the Shanghai Pudong Development Bank, the Minsheng Bank, the China Merchants Bank, and the Shenzhen Development Bank, and so on. Policy�Banks Since the banking reforms of the mid-1980s, the People’s Bank of China (PBOC) has been turned step-by-step into a central bank. Three policy banks have been established to take over the job of policy lending from the four state-owned banks. They are: China Development Bank (CDB), Export and Import Bank of China (Chexim), and Agricultural Development Bank of China (ADBC). These three policy banks, with mandates from the national government, use their capital to support infrastructure construction, develop basic and mainstay industries, release bottlenecks, and adjust industrial and local economic structures. After the 1994 bank reforms, they started to issue Policy F-bonds to commercial banks and other non-bank financial institutions. Other�Banking�Institutions In order to provide financial support to the local small and medium-sized enterprises and private economies, Chinese local governments established a lot of urban credit cooperatives s ince 1979. In the 1990s, urban credit cooperatives were gradually transformed into city commercial banks (CCBs). As of September 2004, Chinese banking system includes 4 SOCBs, 3 policy banks, 12 JSCBs, 4 asset management companies, 111 city commercial banks, 723 urban credit cooperatives, 33,965 rural credit cooperatives, 4 rural commercial banks, 10 rural credit cooperatives, 199 foreign banks, 59 trust & investment companies, 75 financial companies, 12 finance lease companies, 4 auto financing companies and thousands of postal savings. With such a large banking system, China has a relatively high level of financial system depth, which measures the degree to which funding in a nation’s economy is intermediated through formal financial system. Chi...
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