Banking Reform in China

Belinda Bai and Jens Hölscher
Additional contact information
Belinda Bai: Brighton Business School

Chapter 3 in Accounting Reform in Transition and Developing Economies, 2008, pp 45-65 from Springer

Abstract: China's banking reform has achieved significant progress in the past decade; however, problems and challenges remain. Our chapter argues that the inefficiency in the banking industry is mainly due to the system problem, and separate financial sector regulation restricts further banking development. Accession to the World Trade Organization (WTO) will accelerate the speed of China's banking reform, even though with pain and at a price, and in turn, China will benefit from further integration into the world economy. The past decades witnessed successful economic reform in China, with GDP growth at an average rate of almost 8%; per capita GDP from US$266 at the end of 1979 to US$1,081 at the end of 2003 increased more than four times (Table 3.1). Successful accession to WTO on 11 December, 2001, accelerating the pace of economic reform and opening up speed to the world, meanwhile led China's integration even more into the global economy, and “its share in world trade is now over 4 percent, compared with near zero in 1978” (Rodlauer and Heytnes, 2003, in ’Introduction and Overview'). Now, China has become the major driving force in the development of global economy and plays an important role. China's historical record on globalization is very poor. China has almost always been either a strong opponent to this historical process when it was strong enough, or a reluctant follower when it was too weak to voice its opposition. However, given the size of China's population and its dynamic economy over the last 20 years, the integration of China into the world economy will be of far-reaching significance” (Wen, 2001). China could have a bigger impact on the global economy than the other economies in the future.

Keywords: Foreign Direct Investment; World Trade Organization; Commercial Bank; Foreign Bank; Foreign Direct Investment Inflow (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-0-387-25708-2_3

Ordering information: This item can be ordered from
http://www.springer.com/9780387257082

DOI: 10.1007/978-0-387-25708-2_3

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().