The Research Of Development And Regulation Of China’s Private Banking Sector

As China’s market economy develops along with the growing pace of globalisation,the private sector is occupying an increasingly large proportion of the nationaleconomy. Furthermore, the gradual influx of foreign banks into the domestic marketsince China’s entry into the WTO had presented a formidable challenge to her originalbanking industry. The above factors highlight China’s need to improve the structure ofher banking industry, end the state monopoly over the financial sector, and diversifyher financial institutions. To this end, private banks will be at the forefront of China’sfinancial reform. In2014, China had begun to approve private banks on a trial basis,and the development and regulation of such banks have attracted much public attentionsince the program’s conception. This paper will analyse the development and purposeof private banking in China, attempt to define their place within the Chinese economyin line with China’s current situation, and make suggestions regarding the regulationand development of private banks by drawing lessons from the successes and failuresof the private banking sector in other countries and regions, such as Taiwan, the UnitedStates, and South Korea.The first chapter of this paper is a brief outline on the background of private banking inChina. The second chapter is devoted to the history of Chinese private banks, and thecurrent regulatory conditions of China’s overall banking sector. The third chapteranalyses private banking in foreign countries. The fourth chapter discusses thedevelopment trends and strategies of private banks in China. The fifth chapter exploresoptions to regulate private banking, while the sixth chapters concludes the paper bysummarizing its key points, and discussing the future prospects of China’s privatebanking sector.