1978-84: Creating the State-Owned Commercial Banks and
Establishing the Central Bank.
1984-94: Shaping the Banking Landscape and Its Participants. 1994-Current: The Legal Foundation for Commercial Banking.
Although the Chinese banking system has improved in recent years, critical questions regarding their further development remain. In a keynote speech at the the Third National Financial Work Conference in January 2007, Premier Wen Jiabao emphasized six areas that required intensive efforts: deepening the reform of State Owned Commercial Banks, facilitating rural ﬁnancial reforms, developing the capital and insurance markets, improving the ability of ﬁnancial services and functions to adapt to economic development, opening ﬁnancial business actively and modestly to foreign entities, and strengthening supervision of ﬁnancial institutions. In this article, we would like to review a series of signiﬁcant transformations the Chinese banking industry has experienced in the last two or three decades. And then, we would like to discuss some challenges and trends in the further development of the Chinese banking system.