Thesis (MA (Political Science. International Studies))--University of Stellenbosch, 2006. / This study examines, broadly put, why the banking sector in China has not performed as well as
other sectors of the economy when compared to international competitors, given that the
economy as a whole has been performing so exceptionally at the time of writing and has been
for the past two decades. The investigation examines reforms over the past twenty-six years to
provide background to the issue as well as taking a view on the Chinese accession to the World
Trade Organisation in 2001, providing analysis as to the effects of this accession as well as
viewing the undertakings China has made, in general and specific to the banking sector, in terms
of World Trade Organisation membership.
The methodology employed is descriptive and explanatory in nature and information is sourced
from existing academic writing as well as from banking industry publications and research. The
source of information for the study is mainly of a qualitative nature, including historical and
historical comparative information. Furthermore, the research forms applied research in that it
seeks to bring together previous basic and exploratory research in order to identify specific
problems and present potential solutions.
Findings in the research include the burdensome effects of state-owned enterprises on the
banking sector’s largest constituents, problematic aspects of endemic non-performing loans and
a culture of lapsing debt in China as well as problems regarding political interference in the
banking sector by the state and local authorities. Further problems identified include reporting
and supervisory concerns, taxation treatment problems and a lack of risk-based commercial
lending criteria in big Chinese banks. Analysis is provided into the effect of current and past
restrictions in the sector, the development and reform model China is using to globalise its
banks and the 2005 investment surge into China’s bank.
Recommendations are made regarding the foreign ownership of the Chinese banking sector,
state recognition of bad-debts as state loans, debt-management through asset management
companies and reform of the state-owned enterprises and the problems inherent to this initiative.
Finally, recommendations as to the role of the regulator and the challenge of political will are
highlighted.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/2669 |
| Date | 03 1900 |
| Creators | Burden, Kevin |
| Contributors | Davies, Martyn J., University of Stellenbosch. Faculty of Arts and Social Sciences. Dept. of Political Science. |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
| Format | 577498 bytes, application/pdf |
| Rights | University of Stellenbosch |
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