Banking System Reform in China

The Challenges of Moving Toward a Market-Oriented Economy

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.

Table of Contents

  • Chapter One


  • Chapter Two

    A Brief History of Banking-System Reform in China Through the Mid-1990s

  • Chapter Three

    Further Reform for a Market-Oriented Economy

  • Chapter Four

    The Current Situation of Major Commercial Banks

  • Chapter Five

    Issues and Challenges in the Further Development of the Chinese Banking System

  • Chapter Six


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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