Thursday, September 1, 2011

Supportive regulatory policies and control to drive the Banking Industry in China

 by Sachin


Banking Industry in China has a strong growth potential. Supportive regulatory policies and control are strongly driving the development of this market.

The entry of foreign players also propels the growth of this sector making it one of the leading markets in the global scenario.

tChina has largely weathered the financial crisis with the government stimulus package being channeled through the banks, which has resulted in large expansion of bank lending. Bank deposits and loans have both been growing strongly in China, owing to the regulations of the central bank to improve the performance of the banking sector. China Banking Regulatory Commission (CBRC) has helped banks to successfully broaden their business through an increase in non-interest income lately by introducing a number of pilot programmes. From an international perspective, Chinese banks have continued their international expansion largely through organic growth via the opening of international branches and subsidiaries.

The report begins with an introduction to the banking industry in China, distinguishing the regulatory bodies and the various types of banks. The industry overview section begins with an insight into the overall banking industry in China along with its segmentation supporting the fact that Banking industry is witnessing the increasing participation from smaller banks. It further delves into the total deposits and loans, total assets and liabilities and owner's equity of banking institutions in China.

This is followed by a section on key performance indicators, evaluating the industry's performance on the basis of key financial ratios specific to banks. It covers loan-to-deposit ratio, capital adequacy ratio, non-performing loan ratio, provision coverage ratio and profitability.

Foreign ownership in China's banking industry has been covered along with growth of foreign institutions and their assets, segmentation, performance of foreign banking institutions, major foreign investments by Chinese banks and major foreign investments in Chinese banks. It also covers entry strategies for foreign players, typical acquisition process, and major acquisition challenges and solutions for foreign players.

An analysis of macroeconomic policies explains the industry's significance on an economic basis and includes macroeconomic environment of China's banking sector, adjusting the pace of credit supply, supporting economic restructuring and industrial upgrading, and participating in national policy formulation. This is followed by the banking reform development section which covers China's banking reform development, segment-wise reform policies, opening up of the banking sector, financial innovation and regulation, and implementation of BASEL II and BASEL III norms.

The future outlook section highlights the scope for the banking sector in the near future and includes supervisory focus of CBRC in 2011, medium-to-long term banking sector outlook and mitigation of risks in the banking sector.

The competitive scenario in the Chinese banking industry includes brief profile of the major domestics and foreign banks in China (including the "Big Four" banks).

Research On China (ROC) is Netscribes' leading source for market intelligence on emerging sectors in China. Our topics provide a holistic view of an industry and are a spring board for entry strategies, private equity and venture capital investments, investor presentations and management discussions.

For more details on the content of the report and our services you can contact us at sales@researchonindia.com

http://goarticles.com/article/Supportive-regulatory-policies-and-control-to-drive-the-Banking-Industry-in-China/5234529/

No comments:

Post a Comment