Study on the commercial bank system of Mainland China

• Main Authors: Tsai,Mei-Chueh, 蔡梅雀
• Other Authors: Huang,Chieh-Sen
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/66999952952055353952

碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 91 === Study on the Commercial Bank System of Mainland China Student:Tsai,Mei-Chueh Advisor:Huang,Chieh-Sen Abstract Owing to China’s greater opening after its WTO accession and Taiwanese firms expanding their operation to China, the flourishing economic and trade flows between the two sides is expected to be furthered. With the implementation of “active liberalization with effective management” in its policy adjustment, Taiwan has allowed financial institutions to set up branch offices in the Mainland. Consequently, the Taiwanese Banking has been aggressively launched their business in China. The thesis thus studies the commercial bank system of Mainland China. Through interviews and literature review, this study analyzes its financial development, financial reform, current commercial bank system, legal system and the management of foreign invested banks. Furthermore, this study examines the challenge and future development Mainland China’s commercial banks face after its entry to the WTO and therefore found out the results as follow: 1. Mainland China’s entry to the WTO represents the second economic reform and facilitates its connection with international market. 2. The Banking Law assures the principal of separation of financial management and supervision. 3. The Banking Law affirms the modernization of management of commercial banks 4. The system of state-owned commercial bank hinders Mainland China’s financial reform and development. 5. The toughest task of financial reform in Mainland China is how to reduce the Non-Performing Loans (NPLs). 6. Mainland China’s entry to the WTO opens its financial market to foreign invested banks. However, barriers still remain. 7. Due to relatively late entry into Mainland China’s market, it is difficult for Taiwanese banks to expand in the short term. Facing the commercial bank system of Mainland China as well as its entry’s to the WTO and sbusequent opening up of the financial market, Taiwanese Banking is suggested to take following steps so as to compete in Mainland market: 1. To enhance the scope and function of Mainland China’s office. 2. To analyze the risks. 3. To implement localization step by step. 4. To form stragetic partnerships with Chinese banks. 5. To sign the memorandum of financial supervision.