Chinese Banks: Structure, Regulation, and Services

Chinese banks are a vital part of the country's economy, with a long history dating back to the early 20th century.

The five major state-owned banks in China, known as the Big Five, are Bank of China, China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China, and Bank of Communications.

These banks are highly regulated by the Chinese government, with the People's Bank of China (PBOC) serving as the central bank and banking regulator.

The PBOC is responsible for setting monetary policy and supervising the banking system, ensuring stability and soundness in the financial sector.

The Chinese banking system is a complex network of institutions, but let's break it down. The People's Bank of China, the central bank, used to be the only entity authorized to conduct operations in the country. However, in the early 1980s, the government opened up the banking system, allowing five state-owned specialized banks to accept deposits and conduct banking business.

These five specialized banks are the Industrial & Commercial Bank of China (ICBC), China Construction Bank (CCB), Bank of China (BoC), Bank of Communications (BoCom), and the Agricultural Bank of China (ABC). Each of these banks has conducted initial public offerings (IPOs) and has varying degrees of ownership by the public, but they are still majority owned by the Chinese government.

The Chinese banking system has undergone significant changes over the years. In the mid-1990s, the government established three more banks, each dedicated to a specific lending purpose: the Agricultural Development Bank of China (ADBC), the China Development Bank (CDB), and the Export-Import Bank of China.

Here are some of the larger local and international banks operating in China:

The total assets of the Chinese banking system were 288.6 trillion yuan, or $42.7 trillion, by the end of 2021.

The Chinese banking system has undergone significant changes over the years, transforming from a monolithic structure to a more complex and diverse system. The People's Bank of China, the central bank, was the main entity authorized to conduct operations in the country.

In the early 1980s, the government opened up the banking system, allowing five state-owned specialized banks to accept deposits and conduct banking business. These banks are the Industrial & Commercial Bank of China, China Construction Bank, Bank of China, Bank of Communications, and the Agricultural Bank of China.

The Chinese government established three more policymaking banks in the mid-1990s, each dedicated to a specific lending purpose: the Agricultural Development Bank of China, the China Development Bank, and the Export-Import Bank of China.

In China, banking regulation is a complex system with multiple bodies involved. The China Banking Insurance Regulatory Commission (CBIRC) is the main regulatory body, responsible for writing rules and regulations, conducting examinations, and approving bank establishment or expansion.

The CBIRC replaced the China Banking Regulatory Commission (CBRC) in April 2018. The People's Bank of China also plays a crucial role, regulating lending, foreign exchange, and the payment and settlement system.

The CBIRC is responsible for collecting and publishing statistics on the banking system, and resolving potential liquidity, solvency, or other problems that might emerge at individual banks.

The People's Bank of China's role is to reduce overall risk and promote the stability of the financial system.

The CBIRC and the People's Bank of China work together to ensure the stability and soundness of the Chinese banking system.

Here are some key statistics on banking regulation in China:

The Chinese banking system has undergone significant changes over the years, transforming from a monolithic structure to a more complex and diverse system. The People's Bank of China, the central bank, was the main entity authorized to conduct operations in the country.

In the early 1980s, the government opened up the banking system, allowing five state-owned specialized banks to accept deposits and conduct banking business. These banks include the Industrial & Commercial Bank of China, China Construction Bank, Bank of China, Bank of Communications, and the Agricultural Bank of China.

The Chinese government established three more banks in the mid-1990s, each dedicated to a specific lending purpose: the Agricultural Development Bank of China, the China Development Bank, and the Export-Import Bank of China. These policymaking banks play a crucial role in the country's economic development.

The specialized banks have all conducted initial public offerings and have varying degrees of ownership by the public, but they are still majority owned by the Chinese government. This means the government has significant control over these banks.

China has also allowed a dozen joint-stock commercial banking institutions and more than a hundred city commercial banks to operate in the country. This has led to a more diverse banking landscape, catering to different needs and regions.

The total assets of the Chinese banking system were 288.6 trillion yuan, or $42.7 trillion, by the end of 2021. This is a staggering figure, reflecting the country's growing economy and financial sector.

Deposit insurance is a crucial aspect of China's banking structure. It was introduced in May 2015 to protect depositors from losing their funds and prevent bank runs.

The regulations aim to help failed banks exit the industry with minimal negative impact. This is achieved by providing insurance coverage to depositors.

China's Central Bank reported collecting insurance premiums from 4,024 institutions with a balance of 42.38 billion yuan, or $6.27 billion. This demonstrates the scale of deposit insurance in China.

The Chinese banking system has a complex structure, but one thing is clear: the major retail banks play a crucial role in the country's financial landscape. The Industrial and Commercial Bank of China (ICBC) is one of the largest retail banks in China, with a history dating back to 1984.

ICBC has undergone significant changes over the years, including an initial public offering (IPO) that has allowed for varying degrees of public ownership. Despite this, the bank remains majority-owned by the Chinese government.

China Construction Bank (CCB) is another major retail bank in China, with a history that spans over 60 years. CCB has also undergone an IPO and has a significant presence in the country's financial market.

Agricultural Bank of China (ABC) is the third-largest retail bank in China, with a history dating back to 1951. ABC has a significant presence in rural China and offers a range of banking services to its customers.

Bank of China (BOC) is the oldest retail bank in China, with a history that dates back to 1912. BOC has a significant presence in the country's financial market and offers a range of banking services to its customers.

Here is a list of the major retail banks in China:

In China, there are several industrial banks that play a significant role in the country's economy.

Industrial and Commercial Bank of China is one of the largest banks in China, with a long history dating back to 1912.

China has a vast and complex banking system, with many different types of banks serving various purposes.

Industrial and Commercial Bank of China is a state-owned bank that offers a wide range of financial services to individuals and businesses.

Here's a list of some of the major industrial banks in China:

Banks in China are a vital part of the country's economy, with many larger local and international banks operating within the country.

Banks in China offer a wide range of banking services, including personal and business banking, loans, and credit cards.

Chinese banks are required to have a minimum amount of capital, which is set by the China Banking Regulatory Commission.

Online banking services have become increasingly popular in China, with a significant number of transactions taking place each year. The annual number of online banking transactions in China has been steadily increasing, reaching 73.1 billion in 2020.

One of the key drivers of online banking adoption is the growth of mobile payment users. By 2024, there are expected to be over 8.4 billion mobile payment users in China. This trend is likely to continue, with mobile payment users expected to reach 10.2 billion by 2029.

The value of mobile banking transactions in China has also been increasing, reaching 6.6 trillion yuan in the first quarter of 2022. This growth is a testament to the convenience and accessibility of mobile banking services.

Here's a breakdown of the growth of online banking transactions in China:

The monthly active users of leading banking apps in China have also been increasing, reaching 150 million in September 2024. This growth is a testament to the popularity of mobile banking services among Chinese consumers.

Credit cards aren't as widely accepted as you'd expect in China, so it's best to have some cash on hand.

Many areas of China won't accept credit cards or debit cards, so it's essential to have some cash for markets, small restaurants, and transportation.

You can bring cash to China and open a bank account in any bank, which will give you a bank card for withdrawing funds all over the country at no fee.

The card will have the 'unionpay' logo on it and can be used to make purchases in stores and restaurants that accept it.

Counterfeit bills are rare, but they do exist, so be sure to check for texture on Mao's collar - if you feel it, then the banknote is likely real.

Alternatively, you can consider using Wise for simple access to the money you need while abroad and an even better deal.