Business Analysis : Foreign Banks in China
Business analysis- Foreign banks in China 1. Introduction
With the globalization of investment markets, foreign banks are seeking opportunity to incorporate in China. Because during global economic crisis, most enterprises are facing the low profit problem but China seems to be an exception. China still kept a high rate development for these years. Moreover, China is becoming one of the cores of the world’s economy. However, the rising prices and market volatility seems to force China in to an extreme challenge. And the regulatory policy of the government a pressure needs to be face for the banks all over the world.
There are several types of banks in China. First one is the bank operated directly by the central government People’s Bank of China (PBOC), which is the note-issuing bank. The second type is the stated-owned commercial bank, such as, the BOC, ICBC, CBA, ABC; the four major banks are dominating the overall China market. Generally, the four banks account for more than 80% of the total business loans and deposits of the Chinese urban market. The third types are policy banks, which refer to Agricultural Development Banks of China, specialize in policy loans including state reservation and purchase of agriculture by-products and development of agriculture. And China Development Bank specializes in providing financial support to important construction projects of the country. The Export-Import Bank of China, providing financial support for the import and export trades in the state. The fourth type of bank in China is joint-stock and other commercial banks. From late 1980s, various provinces and cities have been permitted to set up joint-stock banks and other commercial banks through capital rose locally and abroad. The last type is foreign banks, there are 53 branches of foreign banks operating in China get the permission from People’s Bank of China to conduct RMB business. Their business sectors are gradually boarded after China became a member of
With the globalization of investment markets, foreign banks are seeking opportunity to incorporate in China. Because during global economic crisis, most enterprises are facing the low profit problem but China seems to be an exception. China still kept a high rate development for these years. Moreover, China is becoming one of the cores of the world’s economy. However, the rising prices and market volatility seems to force China in to an extreme challenge. And the regulatory policy of the government a pressure needs to be face for the banks all over the world.
There are several types of banks in China. First one is the bank operated directly by the central government People’s Bank of China (PBOC), which is the note-issuing bank. The second type is the stated-owned commercial bank, such as, the BOC, ICBC, CBA, ABC; the four major banks are dominating the overall China market. Generally, the four banks account for more than 80% of the total business loans and deposits of the Chinese urban market. The third types are policy banks, which refer to Agricultural Development Banks of China, specialize in policy loans including state reservation and purchase of agriculture by-products and development of agriculture. And China Development Bank specializes in providing financial support to important construction projects of the country. The Export-Import Bank of China, providing financial support for the import and export trades in the state. The fourth type of bank in China is joint-stock and other commercial banks. From late 1980s, various provinces and cities have been permitted to set up joint-stock banks and other commercial banks through capital rose locally and abroad. The last type is foreign banks, there are 53 branches of foreign banks operating in China get the permission from People’s Bank of China to conduct RMB business. Their business sectors are gradually boarded after China became a member of