China has a unique banking system that has changed a lot over the past twenty years. Today there are many commercial banks that operate in the same way as the western model. The government's influence in the banking sector is palpable because this sector used to be nationalized or state-owned. However, as a result of the WTO, more open competition is expected in the near future. The central bank of China is called the People's of China and remains state-owned.
In 2001, currency trading was opened after the WTO talks. In 2007, the first seven institutions were also authorized to operate in China. The next step was also opening the credit card. The first credit cards were offered by the Bank of South East Asia. Electronic banking in China has been around since 1994. The first card was introduced in that year as a Gold Card. The interregional banking network is another important group in the Chinese financial sector. This association has more than six hundred urban and three hundred rural branches.
Banking history
The supervision and governance of the financial system is carried out by the supervisory body of the People's Bank of China (PBOC). The main functions are the following:
• Track payments
• Creation of a settlement system
• Development of foreign exchange policy
• Currency Management
• Gold Reserve Management
China Regulatory Commission (CBRC)
This commission was established in 2003 and the aim of the China Financial Regulatory Commission is to implement the reforms in the banking sector, currency management and financial supervision at the macro level. The basic function of CBRC is to maintain a strong system in China.
National Commercial Financial Institutions
Before 1995, all banking transactions were conducted by the four major banks in China. That year, commercial banking was allowed. The other 4 major financial institutions in China are Bank of China, China Industrial and Trade Organization, China Construction and China Agriculture.
Industrial and Commercial Banks of China (ICBC)
This bank has the largest market share in China. This bank also runs two other main businesses including foreign exchange and clearinghouse business. This bank was also the main player in all financing of projects in the manufacturing and urban sectors.
Second tier in China
In addition to the four major banks, China's other set of financial institutions includes CITIC Bank, Hua Xia Bank, Guangdong Development Organization, China Ever Bright, Shanghai Pudong Development Bank, Shenzhen Development Organization and China Manseng. These organizations are considered to be in better shape than state-owned companies in terms of assets and profitability.
City business organizations are the third tier of banks in China. These have been created through cooperative funds and investments. Shenzhen City Bank is the first bank on this list and was founded in 1995. There are more than seventy city banks operating in China today. This group mainly provides small loans to individuals and small businesses.
In 2001, currency trading was opened after the WTO talks. In 2007, the first seven institutions were also authorized to operate in China. The next step was also opening the credit card. The first credit cards were offered by the Bank of South East Asia. Electronic banking in China has been around since 1994. The first card was introduced in that year as a Gold Card. The interregional banking network is another important group in the Chinese financial sector. This association has more than six hundred urban and three hundred rural branches.
Banking history
The supervision and governance of the financial system is carried out by the supervisory body of the People's Bank of China (PBOC). The main functions are the following:
• Track payments
• Creation of a settlement system
• Development of foreign exchange policy
• Currency Management
• Gold Reserve Management
China Regulatory Commission (CBRC)
This commission was established in 2003 and the aim of the China Financial Regulatory Commission is to implement the reforms in the banking sector, currency management and financial supervision at the macro level. The basic function of CBRC is to maintain a strong system in China.
National Commercial Financial Institutions
Before 1995, all banking transactions were conducted by the four major banks in China. That year, commercial banking was allowed. The other 4 major financial institutions in China are Bank of China, China Industrial and Trade Organization, China Construction and China Agriculture.
Industrial and Commercial Banks of China (ICBC)
This bank has the largest market share in China. This bank also runs two other main businesses including foreign exchange and clearinghouse business. This bank was also the main player in all financing of projects in the manufacturing and urban sectors.
Second tier in China
In addition to the four major banks, China's other set of financial institutions includes CITIC Bank, Hua Xia Bank, Guangdong Development Organization, China Ever Bright, Shanghai Pudong Development Bank, Shenzhen Development Organization and China Manseng. These organizations are considered to be in better shape than state-owned companies in terms of assets and profitability.
City business organizations are the third tier of banks in China. These have been created through cooperative funds and investments. Shenzhen City Bank is the first bank on this list and was founded in 1995. There are more than seventy city banks operating in China today. This group mainly provides small loans to individuals and small businesses.