rveral

TheChineBankingSystem

Asisknowntoall,weChinaisadevelpingcountry,andwiththe

rapiddevelopmentofoureconomy,wehavegainedsomuch

experienceinthesystemofeconomy,suchasthebankingsystem.

ne

bankingsystemisinthemidstofagenerationalprogramof

reformasittransitionstobemoreopentoandsupportiveofthe

emergenceofChinaintotheglobaleconomicsystemafter

ogramwas

wanttotalkaboutsomesimplethingsaboutthechinebanking

system.

Fromthebeginning,Ishouldintroducesomeaboutthehistory

andreformsofthat.

ThebankingsystemwascentralizedearlyonundertheMinistry

ofFinance,whichexercidfirmcontroloverallfinancial

rvices,credit,the1980sthe

bankingsystemwaxpandedanddiversifiedtomeettheneeds

ofthereformprogram,andthescaleofbankingactivityro

getaryproceduresrequiredstateenterpris

toremittothestateonlyataxonincomeandtoekinvestment

n1979and1985,the

volumeofdepositsnearlytripledandthevalueofbankloans

1987thebankingsystemincludedthe

People'sBankofChina,AgriculturalBank,BankofChina(which

handledforeignexchangematters),ChinaInvestmentBank,

ChinaIndustrialandCommercialBank,People'sConstruction

Bank,CommunicationsBank,People'sInsuranceCompanyof

China,ruralcreditcooperatives,andurbancreditcooperatives.

Anotherfinancialinstitution,theBankofChina,handledall

esponsibleforallocating

thecountry'sforeignexchangererves,arrangingforeignloans,

ttingexchangeratesforChina'scurrency,issuinglettersof

credit,andgenerallycarryingoutallfinancialtransactionswith

kofChinahadofficesin

Beijingandothercitiengagedinforeigntradeandmaintained

overasofficesinmajorinternationalfinancialcenters,

includingHongKong,London,NewYork,Singapore,and

Luxembourg.

ThePeople'sConstructionBankmanagedstateappropriations

kedtheactivitiesof

loanrecipientstoensurethatthefundswereudfortheir

asdisburdin

ormpolicyshiftedthe

mainsourceofinvestmentfundingfromthegovernmentbudget

tobankloansandincreadtheresponsibilityandactivitiesof

thePeople'sConstructionBank.

ThroughoutthehistoryofthePeople'sRepublic,thebanking

systemhaxertedclocontroloverfinancialtransactionsand

ernmentdepartments,publiclyand

collectivelyownedeconomicunits,andsocial,political,military,

andeducationalorganizationswererequiredtoholdtheir

realsoinstructedto

keeponhandonlyenoughcashtomeetdailyexpens;allmajor

financialtransactionsweretobeconductedthroughbanks.

Paymentforgoodsandrvicexchangedbyeconomicunits

wasaccomplishedbydebitingtheaccountofthepurchasingunit

andcreditingthatofthellingunitbytheappropriateamount.

Thispracticeeffectivelyhelpedtominimizetheneedfor

currency.

Inaddition,let’ssayalittleabout“ChineBankingRegulation”.

ThemainnationalregulatorybodythatoverestheChine

bankingsystemistheChinaBankingRegulatoryCommission

(CBRC),whichischargedwithwritingtherulesandregulations

Cconductxaminationsand

oversightofbanks,collectsandpublishesstatisticsonthe

bankingsystem,approvestheestablishmentorexpansionof

banksandresolvespotentialliquidity,solvencyorother

problemsthatmightemergeatindividualbanks.

ThePeople'sBankofChinaalsohasconsiderableauthorityover

romthetypicalcentralbank

responsibilityformonetarypolicyandreprentingthecountry

inaninternationalforum,thePBC'sroleistoreduceoverallrisk

also

regulateslendingandforeignexchangebetweenbanks,and

supervisthepaymentandttlementsystemofthecountry.

Finally,weshouldknownsomeaboutthestructureofChina's

bankingsystem.

Itiscompodbyrveralmajorplayersasfollowing：

First,CentralBank:ThePeople'sBankofChinawasthecentral

sfull

autonomyinapplyingthemonetaryinstruments,including

ttinginterestrateforcommercialbanksandtradingin

maintainsthebankingctor's

payment,clearingandttlementsystems,andmanagesofficial

ile,Itoveresthe

StateAdministrationofForeignExchange(SAFE)fortting

ankingRegulatory

Commission(CBRC)wasofficiallylaunchedonApril28,2003,to

takeoverthesupervisoryroleofthePBOC.

Second,CommercialBanks:Morethan100commercialbanks

hasbeenestablished,g

thebanks,therearefourbigstate-ownedcommercialbanks,

includingtheBankofChina(BOC),theChinaConstructionBank

(CCB),theAgriculturalBankofChina(ABC),andtheIndustrial

andCommercialBankofChina(ICBC).

Third,TheBigFour:TheIndustrial&CommerceBankofChina

(ICBC)isthelargestbankinChinabytotalasts,total

fferentiatesitlffrom

theotherStateOwnedCommercialBanksbybeing2ndin

udtobethemajorsupplieroffundstoChina'surbanareas

kofChina(BOC)specializesin

2002,BOC

HongKong(Holdings)wassuccessfullylistedontheHongKong

2.8billionofferingwasover-subscribed

lwasasignificantmoveinthereformof

China’naConstructionBank(CCB)

specializesinmediumtolong-termcreditforlongterm

specializedprojects,suchasinfrastructureprojectsandurban

icultureBankofChina(ABC)

specializesinprovidingfinancingtoChina'sagriculturalctor

andofferswholesaleandretailbankingrvicestofarmers,

townshipandvillageenterpris(TVEs)andotherrural

othercommercialbankshaveadopteda

shareholdingownershipstructure,inwhichChinaMinsheng

BankingCorp(CMBC),istheonlyofficiallyrecognizedprivate

commercialbankatprent.

Four,PolicyBanks:Threenew"policy"banks-theAgricultural

DevelopmentBankofChina(ADBC),ChinaDevelopmentBank

(CDB),andtheExport-ImportBankofChina(Chexim)-were

establishedin1994totakeoverthegovernment-directed

spendingfunctionsofthefourstate-ownedcommercialbanks.

Thebanksareresponsibleforfinancingeconomicandtrade

developmentandstate-investedprojects.

Five,TrustandInvestmentCorporations:

Inthemidstofthereformsofthe1980s,thegovernment

established240orsointernationaltrustandinvestment

corporations(ITICs)thatengagedinvariousformsofmerchant

gestITICisChina

InternationalTrustandInvestmentCorporation(CITIC).

Toconclude,theChinebankingsystemisundergoinga

programofreformneededtohelptransitionthatsystemfrom

statetoprivateownership,andsupporttheeconomy'smoveto

formstartedagenerationagoandwill

ecouroftime,thebanking

organizationwasmodifiedrepeatedlytosuitchanging

conditionsandnewpolicies.