A Brief Comparison of Banking System Betweeen China and Usa

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Li Runzhe
Union
5 April, 2009 -------------------------------------------------------------------------------------------------------The Banking System between China and USA The USA which stands for the developed countries and China which is represent of the developing countries are two super countries in the world. Generally speaking, the USA seems to have more sustaining ability than China in the horrible financial tsunami, but the truth is that China is still comparatively safe now, but the USA has deeply fallen into the economic decline. Why? To a great extent, the banking system plays an important role. In China, the large banks are almost state owned, such as the Communication Bank of China, the Agriculture Bank of China. They are under strict control by the government which can make sure that they are doing the right thing. And what is about the USA? The world famous Wall Street in New York City is proud of its private investment banks and commercial banks, but in the financial tsunami, read the newspaper, you will surprise find out that even the largest the banks went bankrupt and asked the central government for help. That is because the banks are almost private, and the government gives too much freedom to them, they abuse this power and participate in the vicious competition which leads them to the decline. Therefore, the supervisory control of the banking system is different. Their central banking system is also different. In China, the central bank is called People’s Bank of China; it is an embranchment of the State Department, which belongs to the government and serves the government. And the central bank in the USA is called the Federal Reserve, read from the letter; it will lead you to the misdirection that it also owns by the White House, but actually, it is still a private machine. That is why sometimes the government policy can...
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