What is the current system of commercial banking in China? What are the drawbacks?

China's current financial system is led by the People's Bank of China, wholly state-owned commercial banks as the main body of the state policy banks and other commercial banks, as well as a variety of financial institutions co-existing at the same time, the division of labor and cooperation of financial institutions.

1. The People's Bank of China

The People's Bank of China is the central bank of China, responsible for formulating and implementing the country's financial policies and regulating monetary circulation and credit activities. It represents the state externally and supervises and manages the whole financial activities internally.

2. Commercial Banks

China's commercial banking system consists of three major parts, namely, wholly state-owned commercial banks, other joint-stock commercial banks and foreign commercial banks. Among them, wholly state-owned banks are the main body of China's commercial banking system.

3. Policy Banks

Since 1994, China has organized three policy banks directly under the leadership of the State Council, i.e., the China Development Bank, the Agricultural Development Bank of China and the Export-Import Bank of China.

4. Non-Banking Financial Institutions

China's non-banking financial institutions mainly include trust and investment companies, securities companies, insurance companies, finance companies, leasing companies and credit cooperatives.

Currently, China's commercial banking system is:

1, the four major state-owned commercial bank systems of industry, agriculture, China and China Construction;

2, the 11 joint-stock commercial bank systems of Transportation, CITIC, Everbright, Huaxia, China Merchants, Minsheng, SZD, Pudong Development, Industrial, Hengfeng, etc. (the best type of financial institutions in China);

3, the Bank of Shanghai, the Beijing Bank of Shanghai, Bank of Beijing, Bohai Bank, Zheshang Bank, Huishang Bank and other commercial banks with typical regional radiation and distinctive personalized commercial banking system (in the future there may also be Jinshang Bank, Qinshang Bank, etc.)

4, 112 city commercial banks in 112 cities throughout the country;

5, scattered throughout the country 709 urban credit cooperatives (the legal entity*** has 709, but only 412 are in operation).

6, foreign banks, joint venture banks;

Drawbacks:

1, the uneven development among commercial banks, the banking market structure shows a relatively obvious monopoly characteristics, the market competition is not yet sufficient.

2, the international competitiveness of the banking industry is insufficient, and the comprehensive strength and competitiveness of commercial banks are relatively weak.

3, China's commercial bank business development is still in the traditional financial business stage, failed to fully realize the transformation to modern financial business.

4, compared with the banking industry in developed countries, China's banking industry as a whole presents the wholly state-owned commercial banks "big but not strong", joint-stock commercial banks "not strong but not big" development pattern, and there are many inhibitions to China's banking industry to improve the comprehensive competitiveness. There are many problems that inhibit the comprehensive competitiveness of China's banking industry.

Simply put:

1, the nature of property rights convergence, high degree of nationalization

2, disorderly allocation of resources, decision-making inefficiency

3, the core business is a single, narrower scope of operation

4, the mixed business is limited, the market resource fragmentation

5, the huge amount of non-performing assets, the financial security of the worry

6, management control failures, the financial security

6. Failure of management control and insufficient risk prevention