{"id":6594,"date":"2020-12-08T07:15:45","date_gmt":"2020-12-08T07:15:45","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=6594"},"modified":"2025-04-23T09:58:04","modified_gmt":"2025-04-23T09:58:04","slug":"china-business-guide-part-2-the-banking-system","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/china-business-guide-part-2-the-banking-system\/","title":{"rendered":"China Business Guide Part 2: The banking system"},"content":{"rendered":"

In this six-part business guide to doing business in China produced by Hawksford<\/a>, we’ll give an overview of what you need to consider before entering the market. Ranging from localisation, to the legal and banking systems, to type of company set up. This series is a great jumping-off point to understand the many nuances of doing business with China.<\/h2>\n

PART 2: The banking system\u00a0<\/span><\/h3>\n

The Chinese banking system is large relative to the size of the Chinese economy and has expanded significantly over the past decade.<\/p>\n

The People\u2019s Bank of China (PBOC) has considerable authority over the Chinese banking system. Aside from having the typical responsibilities of a central bank for monetary policy and representing China on the international stage, the PBOC\u2019s role is to reduce overall risk and promote the stability of the financial system. The PBOC also regulates lending and foreign exchange between banks and supervises the payment and settlements system in China.<\/p>\n

The PBOC controls five largest state-owned banks in China, namely the Industrial and Commercial Bank of China (ICBC), the Bank of China (BOC), the China Construction Bank (CCB), the Agricultural Bank of China (ABC) and the Bank of Communication (BCOM). Together these banks account for around half of Chinese banking system assets and deposits.<\/p>\n