Bank assets and liabilities continue
to grow strongly
Total assets and liabilities of banking institutions, RMB Trillion, 2003 – 2008
Source: China Banking Regulatory Commission, 2008 Annual Report.
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Financial Development and Reform in China: Assets, Liabilities, and Challenges (2003-2009), Slides of Banking and Finance
Insights into the financial development and reform in china from 2003 to 2009. It covers topics such as the growth of bank assets and liabilities, the improvement of capital adequacy, the non-performing loan problem, rapid loan growth, and the opening up of the chinese banking and insurance markets. The document also discusses the challenges china faces in regulatory coordination, continued market opening to foreign firms, and transparency and fairness in the approval process.
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2012/2013
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Bank assets and liabilities continueto grow strongly^ Total assets and liabilities of banking institutions, RMB Trillion, 2003 – 2008Source: China Banking Regulatory Commission, 2008 Annual Report.
Three of the world’s top 12 banks(by capital size) are Chinese^ Source: The Banker, Top 1000 World Banks 2009, July 2009.
The Non-Performing Loan Problemwas much smaller at the end of 2008^ NPL balance and ratio of major commercial banks, RMB 100 Million and % share,2003-2008 Source: China Banking Regulatory Commission, 2008 Annual Report.
Loan growth has been very rapid,and mainly to state-owned enterprises^ Cumulative loans and loan issuance on a monthly basis, RMB TrillionSource: European Union Chamber of Commerce in China, European Business inChina Position Paper 2009/2010.
Comparisons of home-purchase data showthat mortgage lending is on the rise^ 1 Numbers do not sum to 100% because respondents were allowed to select multiple answers.^ Source: McKinsey Global Institute, If you’ve got it, spend it: Unleashing theChinese consumer, August 2009.
The Chinese banking market remainshighly protected^ OECD FDI regulatory restrictiveness indicator, national banking markets,(0=open, 1=closed), end-2006 US OECDJP DE^ UK
RU CN BR IN 0.000 0.250 0.500 0.^
Source: Koyama, T. and Golub S. S. (2006), "OECD's FDI Regulatory RestrictivenessIndex: Revision and Extension to more Economies", OECD Working Paper.
Recent reforms will somewhatliberalise the environmentfor foreign banks •allowed to underwrite and trade RMBbonds•authorised to issue debit cards•permitted to invest in consumer financecompanies
Growth in the bond market has stalled^ Total annual issuance, RMB Trillion (left) and % of GDP (right),1997 - 2008^ Source: Deutsche Bank Research, China’s financial markets – a future globalforce?, 16 March 2009.
The stock markets have hada roller-coaster ride^ Shanghai & Shenzen Composite Index,Index: December 2002 = 100,2003 – Jan-Aug 2009 Source: The China Analyst, September 2009.
IN CN US BR OECDDE UK RU 0.000^ 0.^
0.500^ 0.^
The Chinese insurance market hasbeen opening up gradually^ OECD FDI regulatory restrictiveness indicator, national insurance markets,(0=open, 1=closed), end-2006 Source: Koyama, T. and Golub S. S. (2006), "OECD's FDI Regulatory RestrictivenessIndex: Revision and Extension to more Economies", OECD Working Paper.
Yet finance is still seen as a relativeweakness for China^ Stage of development, score (1-7), 2009 forecast Source: World Economic Forum, The Global Competitiveness Report 2009-2010.
And competitiveness rankingson finance are weak^ Source: World Economic Forum, The Global Competitiveness Report 2009-2010.
Strength of investor protection
Soundness of banks
Financing through local equity market
Legal rights index
Financial market sophistication
Restriction on capital flows
Regulation of securities exchanges
Access to loans
Venture capital availability
Pay and productivity
Domestic market size
Foreign market size
Rank/ 133 The Global Competitiveness Index, rank (1-133), 2009