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Assets grow 388 times as China's banking industry grows stronger |
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13:03, August 26, 2009 |
Chinese banks absorbed 32.78 billion USD foreign capital
Statistics from China Banking Regulatory Commission (CBRC) show that by the end of June, 2009, China's total banking assets reached 73.7 trillion yuan, 388 times that of 1978. This is an annual growth rate of 21.2%.
In recent years, loans provided by the banking industry account for more than 80% of all capital needed. The role of banks in serving the national economy is becoming more important.
Statistics also show that by the end of 2008, judging by Tier 1 Capital, Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), and Bank of China (BOC) have entered the world's 15 largest banks list. From the industry perspective, the total profit, profit growth rate and return on invested capital of China banking ranks the first in the world.
"Before and after the founding of People's Republic of China, gold and silver are widely circulated. A number of cities were using bank notes issued by foreign banks. The currency system was in extreme chaos, and there was serious inflation. Banks found it hard to survive." Ding Ning, an 82 year old citizen who participated in the take-over of the Bank of China in Shanghai in 1949, recalled the situation at that time.
Over the last 60 years, China has witnessed moving from a chaotic currency system to the establishment of RMB currency system, from foreign banks enjoying a variety of privileges in China to the rising international status of China's banking sector, from the single banking system over a long time to the establishment of a diversified balanced developing banking system, from the simple savings deposit service to loans for business and comprehensive financial services. China's banking industry has undergone tremendous changes over the last 60 years.
In 1978, the banking industry showed new vitality after China's reform and opening up.
From 1979 to 1984, the main part of China's banking industry——Agricultural Bank of China (ABC), Bank of China, China Construction Bank (CCB) and Industrial and Commercial Bank of China (ICBC) resumed or established business.
Banks opened up for business to explore their professional services, for business-oriented reform, and for the shareholding system reform, the reform in the four major banks took place throughout the whole process of China's banking reforms.
Today, China Construction Bank (CCB), Bank of China, and Industrial and Commercial Bank of China (ICBC) have all become listed companies, and the preparation work for Agricultural Bank of China (ABC) to become listed is going smoothly.
The birth, development, risk management and reform of policy banks, small and medium sized commercial banks, rural small and medium sized financial institutions, as well as other non-banking financial institutions are also constantly moving forward. China's banking system is improving.
In 2003, the China Banking Regulatory Commission was established, and China’s monitor work has entered a new stage. The banking industry’s anti-risk ability continuously enhances. As of the end of June, 2009, the number of banks with qualified capital adequacy ratio increased to 219, and their assets account for 99.9% of the total commercial bank assets. And the provision coverage of major commercial banks had reached 136.4 percent.
By People's Daily Online
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