The Reforms and Structure of the Chinese Banking Sector

Since the beginning of the 3rd Plenary Session of the 11th Central Committee of the Communist Party of China, the country has started the policy of reform and opening up to the rest of the world. In particular, the Chinese banking industry has started a number of rounds of reforms, the purposes of which are to improve performance, and increase competition, and stability in the Chinese banking industry. This chapter will review each round of banking reforms in China in turn and it will also focus on introducing each of the five large-scale commercial banks and the 12 joint-stock commercial banks in China. Besides large-scale commercial banks and joint-stock commercial banks, this book will discuss city commercial banks in China. Large-scale commercial banks, joint-stock commercial banks and city commercial banks are the three largest banking ownership types in China. This chapter will also talk about other banks and non-financial institutions in China. Finally, this chapter will give a conclusion.