Lesson 3 The banking industry in China

Lesson3TheBankingIndustriesInChinaDoyouknowthefirstbankcreatedbyChinese?CommercialBankofChinaTeachingObjectivesBytheendofthechapter,studentsshouldbeabletoknowaboutThedevelopmentofthebankingindustryinChinaThestructureofthecentralbankingsystemThemajortasksofthreepolicybanksinChinaThemaintasksofCBRC教学方法TeachingMethodologiesTranslation:keysentencesandtermsParaphrasing:majorwordsandsentencesSummarizing:importantparagraphsDiscussion:keyissuesLead-inQuestionsWhatpopintoourmindswhenmentioningbank?Howmanydifferentkindsofbanksdouknow?Whatkindsofservicesdobanksprovide?Whatdoyouthinkoftheongoingbankingreform?BanksinChina1.Centralbank:People’sBankofChina2.Policybanks:Export/ImportBankofChinaAgriculturalDevelopmentBankofChinaStateDevelopmentBankofChina3.WhollyState-ownedCommercialBanks4.NationwideCommercialBanksBankofCommunicationsChinaMerchantsBankCITICIndustrialBankEverbrightBankofChinaHuaXiaBankChinaInvestmentBank5.RegionalCommercialBanksGuangdongDevelopmentBankPudongDevelopmentBankShenzhenDevelopmentBankFujianIndustrialBank6.Joint-ventureBanks合资银行NingboInternationalBank宁波国际银行XiamenInternationalBank厦门国际银行7.OtherbanksCityCommercialBanks城市商业银行ForeignBanks’Branches外国银行分行VillageBank村镇银行8.Non-bankFinancialInstitutions非银行金融机构RuralCreditCooperatives(Union)农村信用合作社UrbanCreditCooperatives城市信用合作社TrustandInvestmentCompanies信托投资公司InsuranceCompanies保险公司FinanceCompanies金融公司SecuritiesFirms证券公司StockExchanges证券交易所PostOfficeSavingsSystems邮政储蓄系统FuturesExchanges期货交易所LeasingCompanies租赁公司PawnHouses典当行AuctionRooms拍卖行Foreign-fundedBanksinChina1汇丰HSBCTheHongkongandShanghaiBankingCorporationLimited2花旗CitiBank3渣打银行CharteredBank4恒生银行HangSengBank5德意志银行DeutscheBankInstitutionReform1.TheRoleoftheBankingSectorinChinaFiveFunctionsPerformedbytheBanksFourPhasesofBankingSystemBankingsystemandnon-bankingsystemFiveFunctionsPerformedbytheBanksmobilizingsavingsallocatingcapitalfundstransmittingmonetarypolicyprovidingpaymentsystemtransformingrisksMainBusinessTight(Tightening)MPLoose(Loosening)orEasy(Easing)MPExamplesofUS&ChinaGuaranteeFactoringBackgroundInformationTheevolutionoftheChinesebankingsystemcanbebroadlydividedinto4phases:establishmentofPBCinDecember1948Fourspecializedbankswereestablishedin1984Threepolicybankswereestablishedin1994CBRCwascreatedin2003FourPhasesin1948in1984in1993and1994in2001Couldyoudescribethesephases?1.TheestablishmentofthePeople’sBankofChina(PBC)inDecember1948markedthebeginningofthefirstphase,whichwascharacterizedbyamono-bankengagedinbothpolicyandcommercialbankingoperations.Mr.Denglaunchedthereformandopeninguppolicy.2.Thesecondphasebeganin1984whentheStateCouncildecidedtomakethePBCfunctionasacentralbank.FourspecializedbankswereestablishedandtookoverpartPBC’sbusinessactivities.TheIndustrialandCommercialBankofChina,TheAgriculturalBankofChina,TheBankofChina,andTheChinaConstructionBank.in1984,thePBCwasmadeascentralbankinChina.*US:FederalReserveUK:EnglandBankJapan:BankofJapanEurozone:EuropeanCentralBankHK:HongKongMonetaryAuthority3.in1993,DecisiononFinancialReformwasissuedinordertoaddressthesignsofoverheatingandinflationarypressure.Thethirdphasebeganin1993whentheStateCouncilissuedtheDecisiononFinancialReform.ThePBCdidnothaveaclearlegalstatusuntiltheenactmentoftheLawofthePeople’sBankofChinainMarch1995.ThelawprovidesthekeyfunctionsofPBC.Threepolicybankswereestablishedin1994tofacilitatetheseparationofpolicybankingfromcommercialbankingoperations.TheStateDevelopmentBank,TheAgriculturalDevelopmentBankofChina,TheExportandImportBankofChina4.phase4:in2001,China’saccessiontotheWTOusheredinaneweraoftheevolutionofthebankingsystem.Thefourthphasebeganin2003whentheChinaBankingRegulatoryCommission(CBRC)wascreatedinaccordancewiththedecisionatNationalPeople’sCongress(NPC),whotookoverPBC’sfunctiontosuperviseandregulatethebankingsector.SummaryThroughyearsofreformefforts,Chinahasdevelopedabankingsystemconsistingmainlyofthewhollystate-ownedcommercialbanksandjoint-equitycommercialbanksunderthesupervisionofthecentralbank.Asoftheendof2000,China’sbankingsystemhadthreepolicybanks,fourwhollystate-ownedcommercialbanks.Thenon-bankfinancialsectormainlyconsistedoftrustcompanies,investmentcompanies,securitiesfirms,financecompaniesandinsurancefirmsurbanandruralcreditcooperativesVocabularyFinancialInstitutionsPBCStateCouncilMinistryoffinanceThestatecouncildecisiononfinancialreformLawofthepeople’srepublicofchinaonthepeople’sbankofchinaThethirdplenarysessionofthe8thpeople’scongressThestateadministrationofforeignexchangesDecisionontherestructuringofgovernmentagenciesThefirstsessionofthe10thnationalpeople’scongress（NPC）StatedevelopmentandreformcommissionChinabankingregulatorycommission（CBRC）PBC:people’sbankofchina中国人民银行PBCisthecentralbankofthePeople’sRepublicofChinawiththepowertocontroltheChinesemonetarypolicyandregulateChinesefinancialinstitutionsAllinonemonopolisticbankingsystem大一统银行体制Highlycentralizedbankingsystemengagedinbothcentralbankingandcommercialbankingoperations.Specializedbank:specialtybank专业银行是以特定主体为授信对象的银行Centralbank中央银行Agovernmen