Banking System Reform since 1978 Current Banking System State-Holding Joint Stock Commercial Banks Central bank People's Bank of china f banking system reform is to transform state wned commercial banks to state-holding joint- Banking Institutions stock banks BOC and ccB were chosen as two pilot banks CBRC Instituton BoCom got listed in HKSE in 2005, became state- e After financial reconstruction and introduction of Self-discipline rategic investors, all big 5 are now listed in HKSE China Banking Association nstitution Current Banking System Policy Banks China Development Bank 44 City Commercial Banis State Council The major task is to provide long-term financing for key projects and supportiv 80o town andvilage bank construction in infrastructure and basic and pillar industries The bank was reformed in 2008 with $20 hina Develooment bank corporation Policy Banks Policy bank The Export-Import Bank of China Established in 1994, directly supervised by the State council State council lectronic products and high-tech products, cy credit businesses specified by the contracts Most of the funds come from the central bank It also accepts government concession loans and onlends loans of foreign government and business and overseas financing international financial institutions 55 Banking System Reform since 1978 — State-Holding Joint Stock Commercial Banks ◦ In 2002, the State Council confirmed the major task of banking system reform is to transform state￾owned commercial banks to state-holding joint￾stock banks ◦ BOC and CCB were chosen as two pilot banks, financed with $45 billion in the end of 2003 ◦ BoCom got listed in HKSE in 2005, became state￾owned in 2008 with transfer of equity to MOF ◦ After financial reconstruction and introduction of strategic investors, all big 5 are now listed in HKSE and SSE 3-25 Current Banking System 3-26 Central bank People’s Bank of China Regulatory institution CBRC China Banking Association Self-discipline institution Banking Institutions Non-banking Institutions Current Banking System 3-27 Banking System in China 5 State-owned Commercial Banks 12 Joint Stock Commercial Banks 144 City Commercial Banks 3 Policy Banks 337 Rural Commercial Banks 147 Rural Cooperative Banks 1927 Rural Credit Cooperatives 42 Incorporates Foreign Banks 67Trust and Investment Companies 4 Asset Mgt. Companies 150 Finance Companies 20 Financial Leasing Companies 16Auto Finance Companies 1 Postal Saving Bank As of end 2012 4 Consuming Finance Companies 5 Money Brokerage Firms 800+ Town andVillage Banks Policy Banks — China Development Bank ◦ Established in 1994, directly supervised by the State Council ◦ The major task is to provide long-term financing for key projects and supportive construction in infrastructure and basic and pillar industries ◦ The bank was reformed in 2008 with $20 billion capital injection and renamed as “China Development Bank Corporation”. 3-28 Policy Banks — Agricultural Development Bank of China ◦ Established in 1994, directly supervised by the State Council ◦ It raises funds for agricultural policy businesses and undertake the agricultural policy credit businesses specified by the central government ◦ Most of the funds come from the central bank lending,supplemented by deposits from business and overseas financing. 3-29 Policy Banks — The Export-Import Bank of China ◦ Established in 1994, directly supervised by the State Council ◦ It finances the exporting of machinery and electronic products and high-tech products, and supports overseas constructions contracts. ◦ It also accepts government concession loans and onlends loans of foreign government and international financial institutions. 3-30