Cover: Banking System Reform in China

Banking System Reform in China

The Challenges of Moving Toward a Market-Oriented Economy

Published Sep 6, 2007

by Kumiko Okazaki

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This paper briefly reviews the history of Chinese banking-system reform since the late 1970s and examines recent government reform efforts in detail, mainly focusing on the reform of state-owned commercial banks, which are handling more than half of the deposits and loans administered by banks in China. It also analyzes the current condition of major commercial banks using a simple international comparison and considers issues and challenges presented by further reforms intended to increase financial stability and provide for the sustainable economic development of China.

The research described in this report was conducted within RAND’s National Security Research Division and was made possible by sponsorship of the Bank of Japan.

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