A Study of China’s Bank Debt
At present, China’s traditional financial service model with banks at its core is confronted with external challenges. Firstly, as the marketization presses ahead, the industrial competition among banks intensifies. Secondly, as the social financing structure profoundly changes, the phenomenon of financial disintermediation is becoming more and more prominent. Thirdly, pro-cyclical businesses of banks are exposed to risks. Fourthly, as technical disintermediation accelerates, Internet and other technologies are marginalizing banks’ payment and financing function. Fifthly, the debt capacity and structure of banks is approaching the turning point. Sixthly, the liquidity risk management is the most critical issue in the leverage ratio management of commercial banks. Meanwhile, there are some internal problems in the transformation of China’s banking industry. Firstly, banks with single-large shareholders have some inherent defects in their corporate management, and the de-administration of banks remains a huge task. Secondly, the functions of commercial banks are converging. Thirdly, the customer-oriented operation logic has not been formed yet. Fourth, the information technology capability of banks is not strong enough to fully release productivity.