Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212720
Authors: 
Fungáčová, Zuzana
Korhonen, Iikka
Year of Publication: 
2011
Series/Report no.: 
BOFIT Discussion Papers No. 32/2011
Abstract: 
This paper provides an overview of the Chinese banking sector, which has expanded tremendously over the past two decades. We first describe aggregate developments of the sector and compare them to the situation in other countries. Also, various financial institutions that operate in China are analyzed. Our results confirm that the Chinese banking sector is truly in a class of its own, especially given the level of China's economic development. Despite significant reforms, the state and various public organizations still own controlling shares in the largest commercial banks. The state is also present on the borrowers' side; it is estimated that about half of state-owned commercial bank lending still goes to state-controlled companies. In this way, the banking system can serve as an important policy tool. Another distinctive feature of the Chinese banking sector is the variety of its banking institutions. New types of banking institutions, especially those serving rural areas, are emerging all the time. While equity and debt markets are still tiny relative to the banking sector and their importance as sources of financing of investment remain minor, they have evolved rapidly in recent years.
Subjects: 
China
banking sector
state banks
JEL: 
G28
P34
G21
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-727-6
Document Type: 
Working Paper

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