Skip to main content
SpringerLink
Log in

Introduction

  • Chapter
Banking Regulation in China

  • 306 Accesses

Abstract

Following criticisms of financial market regulation in the aftermath of the Global Financial Crisis (GFC), there has been a resurgence of interest in exploring regulation in relation to public and private interests. Many countries have revisited their financial regulatory frameworks, and embarked upon various reforms in an attempt to overcome regulatory deficiencies exposed by the GFC, to improve regulatory structure and regulatory culture, and to better serve the interests of the public. During the reform process, governments and regulators have been compelled to reconsider the balance between public and private interests within financial regulation and its application to the financial services market.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes

  1. Banks around the World, Top Banks in the World 2013, 2013, http://www.relbanks.com/worlds-top-banks/assets.

    Google Scholar 

  2. United States-China Economic and Security Review Commission, “China’s Financial System and Monetary Policies: The Impact on U.S. Exchange Rates, Capital Markets, and Interests Rates,” 2006, http://www.uscc.gov/hearings/2006hearings/transcripts/aug_22/06_10_22_trans.pdf, 3.

    Google Scholar 

  3. Zhong Fei Zhou, Banking Laws in China (London: Kluwer Law International, 2007).

    Google Scholar 

  4. Zhou Zhong Fei and Li Jing Wei, “Independence and Accountability of the People’s Bank of China: A Legal Perspective,” in James R. Barth (ed.), Financial Restructuring and Reform in Post-WTO China (London: Kluwer Law International, 2007), 77, 103.

    Google Scholar 

  5. Susan Krause Bell and Howard Chao, The Financial System in China: Risks and Opportunities Following the Global Financial Crisis (Washington, DC: Promontory Financial Group, 2010), 7; IMF, “People’s Republic of China: Financial System Stability Assessment,” 2011; World Bank and the People’s Republic of China Development Research Center of the State Council, “China 2030 Building a Modern, Harmonious, and Creative High-Income Society,” 2012.

    Google Scholar 

  6. Anthony Ogus, Regulation Legal Form and Economic Theory (Oxford: Hart Publishing, 1994), 4.

    Google Scholar 

  7. CBRC, Guan Yu Zhong Guo Ren Min Yin Hang Ye Jian Du Wei Yuan Hui Lu Xing Yuan You Zhong Guo Ren Min Yin Hang Lu Xing de Jian Du Guan Li Zhi Ze de Jue Ding [Decision on Chinese Banking Regulatory Committee in Charge of Supervisory and Regulatory Responsibility], 2003, http://www.cbrc.gov.cn/chinese/home/jsp/docView.jsp?docID=259.

    Google Scholar 

  8. CBRC, Yin Jian Hui de Jian Guan Mu Biao [The Regulatory Objectives of the CBRC], 2003, http://www.cbrc.gov.cn/english/info/yjhjj/index.jsp

    Google Scholar 

  9. CBRC, Annual Report 2008, Beijing, 2009, 16.

    Google Scholar 

  10. CBRC, Annual Report 2007, Beijing, 2008, 101.

    Google Scholar 

  11. PBoC, Zhong Guo Ren Min Yin Hang Hang Zhang Zhou Xiao Chuan Hui Da Ji Zhe Ti Wen [The PBoC’s Governor Zhou Met the Media], Beijing, 2011, http://www.pbc.gov.cn/publish/goutongj iaoliu/524/2011 /20110803005042423947288/20110803005042423947288_.html.

    Google Scholar 

  12. PBoC, Zhong Guo Ren Min Yin Hang Jian Jian [The Introduction of the PBoC], Beijing, 2000, http://www.pbc.gov.cn/publish/zhengwugongkai/495/1811/18118/18118_.html.

    Google Scholar 

  13. Gregory C. Chow, China’s Economic Transformation, 2nd ed. (Oxford: Wiley-Blackwell, 2007), 252.

    Google Scholar 

  14. Xinhua, Li Jie Quan Guo Jin Rong Hui Yi Hui Gu [Revisiting National Conference on Financial Work], Beijing, 2007, http://news.cctv.com/special/C17533/20070118/103903.shtml.

    Google Scholar 

  15. Dai Xiang Rong, “Hui Gu 1997 Quan Guo Jin Rong Gong Zuo Hui Yi” [1997’s National Conference on Financial Work], Zhong Guo Jin Rong [China Finance] 55 (2010): 19–20.

    Google Scholar 

  16. Xinhua, Quan Guo Jion Rong Gong Zuo Zai Jing Zhao Kai Wen Jiao Bao Zuo Zhong Yao Jiang Hua [Wen’s Speech at the National Conference on Financial Work], Beijing, 2007, http://news.xinhuanet.com/politics/2007–01/20/content_5630446.htm.

    Google Scholar 

  17. Gail Pearson, “Risk and the Consumer in Australian Financial Services Reform,” Sydney Law Review 28 (2006): 103.

    Google Scholar 

  18. Xinhua, Zhong Yang Jing Ji Gong Zuo Hui Yi Ju Xing Xi ling Ping Zuo Zhong Yao Jiang Hua [Xi Jing Ping’s Speech at the Government’s Meeting on Economy], Beijing, 2012, http://news.xinhuanet.com/fortune/2012–12/16/c_114044452.htm.

    Google Scholar 

  19. CPC, Bu Duan Ti Shen Fa Zhan Zhi Liang he Xiao Yi [Develop the Quality and “Xiao Yi” of the Economy], Beijing, 2013, http://cpc.people.com.cn/shipin/n/2013/0322/c244186–20886323.html.

    Google Scholar 

  20. National People’s Congress, “Constitution of People’s Republic of China,” 1982, Preamble.

    Google Scholar 

  21. The State Council, Gong He Guo de Zu Ji [Path of the Republic], Beijing, 2009, http://www.gov.cn/jrzg/2009–09/24/content_1425253.htm.

    Google Scholar 

  22. Zhong Gong Zhong Yang Wen Xian Yan Jiu Shi [The Communist Party of China Research Department], Jiang Ze Ming Lun You Zhong Guo Te Se de She Hui Zhu Yi [Jiang Ze Min: Socialist Market Economy with Chinese Characteristics], The Communist Party of China Research Department, 2002, 45.

    Google Scholar 

  23. Chen Shi Kui, “Bu Du Li Gao Dang Jia Yu She Hui Zhu Yi Shi Chang Jing Ji de Neng Li” [Increase the Party’s Capability in Managing Socialist Market Economy], Chong Qin You Dian Yue Xuan Xue Bao [Journal of Chong Qin Post College] 2 (2006): 145.

    Google Scholar 

  24. IMF, “How the IMF Promotes Global Economic Stability,” 2013, 1, http://www.imf.org/external/np/exr/facts/globstab.htm.

    Google Scholar 

  25. World Bank, “Governance and Development,” 1992, 1, http://documents.worldbank.org/curated/en/1992/04/440582/governance-development.

    Book  Google Scholar 

  26. A.W. Phillips, “Stabilisation Policy in a Closed Economy,” Economic Journal 64, no. 254 (1954): 291.

    Article  Google Scholar 

  27. World Health Organization, “China: Health, Poverty, and Economic Development,” 2005, 25, http://www.who.int/macrohealth/action/CMH _China.pdf.

    Google Scholar 

  28. Claude Ake, “A Definition of Political Stability,” Comparative Politics 7, no. 2 (1975): 271.

    Article  Google Scholar 

  29. Wendy Dobson and Anil K Kashyap, “The Contradiction in China’s Gradualist Banking Reforms: General Discussion,” Brookings Papers on Economic Activity 2 (2006): 158

    Google Scholar 

  30. and Suzanne Berger, Albert Hirschman, and Charles Maier, In Search of Stability: Explorations in Historical Political Economy (New York: Cambridge University Press, 1987), 267.

    Google Scholar 

  31. Alberto Alesina, “Political Instability and Economic Growth,” Journal of Economic Growth 1, no. 2 (1996): 205. Some research show that there is no evidence of correlation between political instability and economic growth.

    Article  Google Scholar 

  32. See N. Campos and J. Nugent, “Who is Afraid of Political Instability?” Journal of Development Economics 67 (2002): 172.

    Article  Google Scholar 

  33. Also see Samuel Huntington, Political Order in Changing Societies (New Haven, CT; London: Yale University Press, 1968), 8.

    Google Scholar 

  34. The State Council, Hu Jing Tao Zai Qing Zhu Zhong Guo Gong Chang Dang Cheng Li 90 Zhou Nian Da Hui Shang de Jiang Hua [Hu’s Speech at 90th Anniversary of the Foundation of the Communist Party of China], Beijing, 2011, http://www.gov.cn/ldhd/2011–07/01/content_1897720.htm.

    Google Scholar 

  35. Xinhua, Zhong Guo Zheng Zhi She Hui Wen Ding Ju You Jian Shi de Ji Chu [A Solid foundation for China’s Political Stability], Beijing, 2011, http://news.xinhuanet.com/politics/2011–03/16/c_121195656.htm.

    Google Scholar 

  36. David Dollar, “Poverty, Inequality and Social Disparities During China’s Economic Reform,” Policy Research Working Paper 4253, World Bank, 2007, 2.

    Book  Google Scholar 

  37. China Daily, Country’s Wealth Divide Past Warning Level, http://www.chinadaily.com.cn/china/2010–05/12/content_9837073.htm. The Gini coefficient provides a measure of the degree of income inequity in a scale from 0 to 1.0 that represents perfect equity. See Australian Bureau of Statistics, Household Economic Wellbeing, September 2010, http://www.abs.gov.au/ausstats/abs@.nsf/2f762f95845417aeca25706c00834efa/27ced12db6ca9111ca25779e001c4843!OpenDocument.

    Google Scholar 

  38. Thomas Lum, “Social Unrest in China,” Congressional Research Service, The Library of Congress, 2006, 15.

    Google Scholar 

  39. Stephan Haggard and Sylvia Maxfield, “Political Explanations of Financial Policy in Developing Counties,” in Stephan Haggard, Chung H. Lee, and Sylvia Maxfield (eds.), The Politics of Finance in Developing Countries (Ithaca, NY: Cornell University Press, 1993), 323.

    Google Scholar 

  40. Ian Bremmer, The End of the Free Market (New York: Penguin Group, 2010), 5.

    Google Scholar 

  41. Richard Dale and Simon Wolfe, “The UK Financial Services Authority: Unified Regulation in the New Market Environment,” Journal of Banking Regulation 4, no. 3 (2003): 201.

    Article  Google Scholar 

  42. George Clarke et al., “Foreign Bank Entry: Experience, Implications for Developing Economies, and Agenda for Further Research,” The World Bank Research Observer 18, no. 1 (2003): 26.

    Article  Google Scholar 

  43. This view is contentious, see Bang Nam Jeon, Maria Pia Olivero, and Ji Wu, “Do Foreign Banks Increase Competition? Evidence from Emerging Asian and Latin American Banking Markets,” Journal of Banking & Finance 35 (2011): 858.

    Google Scholar 

  44. Chung-Hua Shen, Chin-Hwa Lu, and Meng-Wen Wu, “Impact of Foreign Bank Entry on the Performance of Chinese Banks,” China & World Economy 17, no. 3 (2009): 120.

    Article  Google Scholar 

  45. Katharina Pistor, “Banking Reform in the Chinese Mirror,” Columbia Law and Economics Working Paper No. 354, Columbia University School of Law, 2009, 19–20.

    Google Scholar 

  46. Yuhua Xu, “Multi-Year Expert Meeting on Services, Development and Trade: The Regulatory and Institutional Dimension Country Report: China,” United Nations Conference on Trade and Development, 2009, http://www.unctad.org/sections/wcmu/docs/c1mem3p32_en.pdf.

    Google Scholar 

  47. Jiang Yun, “Lun Wo Guo Dang Qian Li Yong Wai Zi He Jing Ji Zhu Quan de Guan Xi” [Foreign Participation and Economic Sovereignty], Chang San Jiao [Yangtze Delta] 5, no. 6 (2008): 125.

    Google Scholar 

  48. CBRC, Annual Report 2010, Beijing, 2011, 26.

    Google Scholar 

  49. Adam Zwass, Money, Banking, & Credit in the Soviet Union & Eastern Europe (White Plains, NY: Sharpe, 1979), 81.

    Google Scholar 

  50. Ludwig von Mises, Economic Calculation in the Socialist Commonwealth (Auburn, AL: Ludwig Von Mises Inst, 1920), 27.

    Google Scholar 

  51. Allen Franklin, Jun Qian, and Meijun Qian, “China’s Financial System: Past, Present, and Future,” in Loren Brandt and Thomas G. Rawski (eds.), China’s Great Economic Transformation (Cambridge: Cambridge University Press, 2008), 509.

    Google Scholar 

  52. For elaborated comments regarding “the Four Transformations and Eight Reforms,” see William Byrd, China’s Financial System: The Changing Role of Banks (Boulder, CO: Westview Press, 1983), 58.

    Google Scholar 

  53. Donald Clark, Peter Murrell, and Susan Whiting, “The Role of Law in China’s Economic Development,” in Loren Brandt and Thomas G.Rawski (eds.), China’s Great Economic Transformation (New York: Cambridge University Press, 2008), 381.

    Google Scholar 

  54. Wang Guo Gang, “Zhong Guo Yin Hang Gai Ge: Li Shi, Xian Zhuang yu Wei Lai” [Reform in the Chinese Banking Sector: History, Present, and Future], Zhong Guo Jing Ji Wen Ti [China Economic Issues] 6 (1996): 19.

    Google Scholar 

  55. Qiao Gui Ming, “Zhong Guo Guo You Yin Hang Gai Ge de Yan Hua Lu Jin: 30 Nian” [The Revolution of Chinese State-Owned Banks: 30 Years on], Journal of Shanghai University of Finance and Economics 11, no. 1 (2009): 79.

    Google Scholar 

  56. Y. C. Richard Wong and M. L. Sonia Wong, “Competition in China’s Domestic Banking Industry,” Cato Journal 21, no. 1 (2001): 21.

    Google Scholar 

  57. TangNa De and BuLi En, “Zhong Guo De Yin Hang Ye Gai Ge” [Reform in China’s banking sector], Wai Guo Li Lun Dong Tai [Western Theories] 9 (2009): 3.

    Google Scholar 

  58. Zhu Xin Qiang, “The Pace Quickens,” Paper presented at the Bankers’ Association for Finance and Trade’s 14th Annual Conference on International Trade, Chicago, 2004.

    Google Scholar 

  59. Weitseng Chen, “WTO: Time’s Up for Chinese Banks—China’s Banking Reform and Non-Performing Loan Disposal,” Chicago Journal of International Law 7, no. 1 (Summer 2006): 247.

    Google Scholar 

  60. Lu Xiang, “Zhong Guo Yin Hang Ye Gai Ge Kai Fang Li Cheng de Yan Jiu” [Study on China’s Banking Sector Reform and Development], Journal of Chongqing University 16, no. 3 (2010): 23.

    Google Scholar 

  61. Xinhua, Wang Qi Shan: Wo Yi Da Dun, Ni Men Jiu Pao Le [Wang Qi Shan: You Ran Away When I Napped], http://news.xinhuanet.com/zt2011/content/2011–03/14/content_2313609.htm, September 19, 2011.

    Google Scholar 

  62. YK Mo, “A Review of Recent Banking Reform in China,” International Bank Settlement, 1999, 99.

    Google Scholar 

  63. Jason George, Ben Fung, Stefan Hohl, and Guonan Ma, “Public Asset Management Companies in East Asia,” Bank For International Settlements, 2004, 11.

    Google Scholar 

  64. Yingyi Qian, “The Institutional Foundations of China’s Market Transition,” Paper presented at the World Bank’s Annual Conference on Development Economics, Washington, DC, April 28–30, 1999, 35.

    Google Scholar 

  65. Liu Gang, “Jing Ji Zhuan Xing Yao Qiu Guo You Yin Hang Gai Ge” [Economic Transformation Needs the Reform in Banking Sector], Shi Dai Jing Rong [Times Finance] 1, no. 433 (2011): 8.

    Google Scholar 

  66. PBoC, “Implementing Plans for Reforming Provincial Offices of the People’s Bank of China,” Bulletin of the People’s Bank of China 61 (February 10, 1999): 4, 5.

    Google Scholar 

  67. World Trade Organization, WTO Successfully Concludes Negotiations on China’s Entry, September 17, 2009, http://www.wto.org/english/news_e /pres01_e/pr243_e.htm.

    Google Scholar 

  68. John R. Dearie, “China’s Financial System and Monetary Policies: The Impact on U.S. Exchange Rates, Capital Markets, and Interests Rates,” U.S.-China Economic and Security Review Commission, 2006, 44.

    Google Scholar 

  69. PBoC, Shanghai Zong Bu [Shanghai Head Office], Beijing, 2003, http://shanghai.pbc.gov.cn/publish/fzh_shanghai/2969/index.html.

    Google Scholar 

  70. Zhou Xiao Chuan, “Guan Yu Guo You Shang Ye Ying Hang Gai Ge de Ji Ge Wen Ti” [Some Problems Regarding the Reform of State Commercial Banks], PboC, 2005.

    Google Scholar 

  71. Niu Dun, “Xin Shi Ji Zhong Guo Shang Ye Yin Hang Gai Ge Fen Xin” [Analysis of Reform on China’s Commercial Banks in New Century], Cai Shui Jing Mao [Economic and Taxation] 6 (2009): 6.

    Google Scholar 

  72. Xinhua, Nong Ye Yin Hang Gong Si Gu Pai Cheng Li [Establishment of Agriculture Bank of China Corporation], September 14, 2009, http://news.xinhuanet.com/fortune/2009–01/16/content_10668090.htm.

    Google Scholar 

  73. China Construction Bank, “2005 Annual Results Announcement,” 2006, 4, http://www.ccb.com/en/investor/1144375719100.html.

    Google Scholar 

  74. Xinhua, Jiang Hang Shang Shi [China’s Construction Bank’s IPO], September 8, 2011, http://news.xinhuanet.com/stock/2005–10/27/content_3691258.htm.

    Google Scholar 

  75. Michael F. Martin, “China’s Banking System: Issues for Congress’ Congressional Research Service,” 2012, 35.

    Google Scholar 

  76. Steven Fries and Anita Taci, “Banking Reform and Development in Transition Economies,” European Bank for Reconstruction and Development, Working Paper No. 71, 2002, 1.

    Google Scholar 

  77. CBRC, Guo Wu Yuan Ban Gong Ting Guan Yu Yi Fa Cheng Chu Fei Fa Ji Zi You Guan Wen Ti de Tong Zhi [Notice on Punishing Illegal Fund-raising], Beijing, 2007. According to Section 6 of Several Opinions of the Supreme People’s Court on Issues Concerning Credit Cases (1991), interest on private loans is not to exceed four times bank interest rate.

    Google Scholar 

  78. Niu Tai Shen, “Cong Wu Ying An Kan Ming Jian Rong Zi Fa Lu Kun Ju” [Case of Wu Ying: the Conundrum of Informal Financing], Jing Ji [Economy] 10 (2011): 57.

    Google Scholar 

  79. However, recent research questions the effect of inform financing in promoting growth. See Meghana Ayyagari, Asli Demirguc-Kunt, and Vojislav Maksimovic, “Formal versus Informal Finance: Evidence from China,” The Review of Financial Studies 23, no. 8 (2010): 3048–3097.

    Article  Google Scholar 

  80. Tony L. Whitehead, Basic Classical Ethnographic Research Methods, Ethnographically Informed Community and Cultural Assessment Research Systems (eiccars) Working Paper Series, University of Maryland, 2005, 4.

    Google Scholar 

  81. Karen P. Y. Lai, “Marketization through Contestation: Reconfiguring China’s Financial Markets through Knowledge Networks,” Journal of Economic Geography 11 (2010): 94.

    Google Scholar 

Download references

Authors
  1. He Wei Ping
    View author publications

    You can also search for this author in PubMed Google Scholar

Copyright information

© 2014 He Wei Ping

About this chapter

Cite this chapter

Ping, H.W. (2014). Introduction. In: Banking Regulation in China. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137367556_1

Download citation

Publish with us

Policies and ethics

Search

Navigation