Progress in China’s Banking Sector Reform : Has Bank Behavior Changed? / Richard Podpiera.

Format:

Book

Government document

Author/Creator:

Podpiera, Richard.

Contributor:

International Monetary Fund. Monetary and Financial Systems Department.

Series:

IMF Working Papers; Working Paper ; No. 2006/071

IMF Working Papers

Language:

English

Subjects (All):

Banks and banking--Government ownership--China.

Banks and banking.

Banks and banking--State supervision--China.

Bank loans--China.

Bank loans.

Credit--Management--China.

Credit.

Corporate governance--China.

Corporate governance.

Physical Description:

1 online resource (25 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2006.

Language Note:

English

Summary:

Substantial effort has been devoted to reforming China's banking system in recent years. The authorities recapitalized three large state-owned banks, introduced new governance structures, and brought in foreign strategic investors. However, it remains unclear the extent to which currently reported data reflect the true credit risk in loan portfolios and whether lending decisions have started to be taken on a commercial basis. We examine lending growth, credit pricing, and regional patterns in lending from 1997 through 2004 to look for evidence of changing behavior of the large state-owned commercial banks (SCBs). We find that the SCBs have slowed down credit expansion, but that the pricing of credit risk remains undifferentiated and banks do not appear to take enterprise profitability into account when making lending decisions. Controlling for several factors, we find that large SCBs have continued to lose market share to other financial institutions in provinces with more profitable enterprises. The full impact of the most recent reforms will become clear only in several years, however, and these issues should be revisited in future research.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. REFORMS IN TWO PILOT BANKS""; ""III. REFORMS IN OTHER BANKS AND DEPOSIT-TAKING INSTITUTIONS""; ""IV. CREDIT RISK AND BANK LENDING DECISIONS ""; ""V. CONCLUSIONS AND ISSUES GOING FORWARD: CREATING THE INCENTIVES AND INFRASTRUCTURE FOR BANKS TO OPERATE EFFICIENTLY""; ""- APPENDIX""

Notes:

"March 2006."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613826336

9781462339723

1462339727

9781452735016

1452735018

9781283513883

1283513889

9781451908671

1451908679

OCLC:

694141245