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Quarterly Report on China's Banking Industry Product Image

Quarterly Report on China's Banking Industry

  • ID: 888617
  • November 2014
  • Region: China
  • Market Avenue

After extending credit to small- and medium-sized companies in August 2008, China's central bank developed policies to lower both interest rates and bank reserve requirements, which would ease loan conditions. But since banks have become parsimonious with loans, the increase of mid- and long-term loans began to slow down since the third quarter of 2008. By the end of September the balance of local and foreign currencies of China's financial institutions was RMB31,480bn, up by 14.73% year-on-year, while the balance of renminbi loans rose from 14.48% to RMB29,650bn.

Deposits increased to RMB6,560bn in China's financial institutions 01/2008-09/2008, up RMB1,810bn year on year. The variety of deposits shows that the contribution of non-financial companies and governments slowed, while deposits from residents accounted for a majority of deposits. Data shows that the share of regular deposits increased to 47.7% of the total in renminbi, up 1.5% from the previous quarter, and up 1.2% from the previous month.

The gap between M1 and M2 in the third quarter grew to its widest since May 2006, showing that the money generation speed of China's financial system has slowed along with READ MORE >

Operation of China's Banking Industry

1.1 Deposits
1.1.1 Deposits in Financial Institutions have Greatly Increased
1.1.2 Increase of Deposits from Companies has Slowed while Deposits from Residents has Increased Rapidly
1.1.3 Regular Deposits Are Increasing

1.2 Loans
1.2.1 Increase of Mid- and Long-term Loans Is Slowing
1.2.2 Policies Ease Credit while Banks Tighten Lending
1.2.3 Foreign Exchange Loans Continue to Drop
1.2.4 Bill Discount Loans have Increased Slightly

1.3 Liquidity
1.3.1 Rate of Increase for M2 is the Lowest in Three Years while the Demand for Real Economy Slows in Step
1.3.2 Monthly Reductions of M1 Marks Pressure on Corporate Fund Chain

1.4 Interbank Market
1.4.1 Money Market Is Active
1.4.2 An Overall Increase of Interest Rates in Money Market
1.5 Investment in Securities Is Reducing Monthly

Chapter Two: Operation of China's Banking Industry in the First Three Quarters of 2008

2.1 Total Assets and Total Liabilities of Financial Institutions
2.1.1 Overall Situation and Mix
2.1.2 Situations of Different Financial Institutions

2.2 Non-Performing Loans in Commercial Banks
2.2.1 Non-Performing Loan Balance and Ratio
2.2.2 Mix of Non-Performing Loans
2.2.3 Non-Performing Loans of Different Financial Institutions

2.3 Operation of Foreign Banks in China

2.4 Operational Performance of Listed Banks

Chapter Three: Policies and Innovation of China's Banking Industry in the First Three Quarters of 2008

3.1 Dynamics of Policies
3.1.1 China Banking Regulatory Commission (CBRC) Becomes Strict with Loans to Two Industries
3.1.2 Banks Taking Strict Precautions against Risks of Car Loans
3.1.3 Banking QDII Has Obtained Permission to Invest in Japanese Stock Markets
3.1.4 Rural Commercial Banks Are Encouraged to Go Public
3.1.5 China's Central Bank Requires New Loans not to Exceed RMB3,630bn in 2008
3.1.6 Commercial Banks are Allowed to Engage in Gold Futures
3.1.7 Mid- and Large-sized Banks are Allowed to Set up Rural Financial Market Departments
3.1.8 Pilot Scheme of Microfinance Institutions has Been Initiated
3.1.9 Loans from Commercial Banks are Available to High-quality Venture Capital Firms
3.1.10 CBRC has Ordered a Halt to Commercial Banks' Business of Acting as Guarantors for Real Estate Companies to Get Loans from Trust Companies
3.1.11 CBRC Warns against Risks of Cashing with Credit Cards
3.1.12 CBRC Has Ordered a Halt to Financial Institutions' Foreign Exchange Margin Trading Business
3.1.13 Credit Lines Have Increased by 5%
3.1.14 China's Central Bank Raises Credit Lines for Commercial Banks
3.1.15 A Rise of 3% in Interest Rate of Small Loans Is Allowed
3.1.16 Stricter Control over Loans to Commercial Real Estate Projects
3.1.17 CBRC's Urgent Investigation in U.S.-related Assets
3.1.18 Central Bank Cuts Lending Rates and Reserve Requirements

3.2 Innovative Dynamics of Banking Industry
3.2.1 Innovative Dynamics of China's Banking Industry
3.2.2 Innovative Dynamics of Industrial and Commercial Bank of China
3.2.3 Innovative Dynamics of China Construction Bank
3.2.4 Innovative Dynamics of Agricultural Bank of China
3.2.5 Innovative Dynamics of China Merchants Bank
3.2.6 Innovative Dynamics of China's Rural Banking Sector
3.2.7 Bank of Communications First Provided Gold Futures Services to Individuals
3.2.8 Ministry of Finance Takes over Shares of Bank of Communications Held by Central Huijin Investment Company Limited
3.2.9 Shenzhen Development Bank Obtained Permission to Issue Subordinated Bonds of RMB7bn
3.2.10 China Development Bank Bought Stakes of Shenzhen Financial Leasing Co., Ltd.
3.2.11 Beijing Rural Commercial Bank Successfully Issued Subordinated Bonds of RMB1.2bn
3.2.12 China Everbright Bank Applied to Go Public
3.2.13 China Development Bank Took Part in Capital Increase of Barclays Bank

3.3 Dynamics of Banking Industry's Open to the Outside
3.3.1 Foreign Banks' Initiated First Pilot Project of Small Loans to Agricultural Projects
3.3.2 Foreign Banks Are Allowed to be Listed on China's Stock Markets
3.3.3 CBRC and Monetary Authority of Singapore Jointly Supervise QDII Business of Commercial Banks
3.3.4 Citibank Cuts Mortgage Loan Portfolio by US$45bn
3.3.5 Standard Chartered Makes Great Effort to Do Bank Insurance Business in China
3.3.6 ICBC Is Allowed to Set up Shop in Dubai
3.3.7 Foreign Bank Completed the First Gold Trade in China
3.3.8 First Case of a Taiwan Bank Indirectly Buying Stake in a Bank in Mainland China
3.3.9 Postal Savings Bank of China Got Permission to Collaborate with Foreign Banks in Contracted Deposit Business
3.3.10 Rockefeller Foundation and Societe Generale Jointly Enter Private Banking Markets
3.3.11 Agricultural Bank of China Entered a Strategic Alliance with Singapore Exchange
3.3.12 Agricultural Development Bank of China Signed a Memorandum of Collaboration with National Australia Bank Ltd.
3.3.13 Bank of Beijing and Scotiabank Make Joint Effort to Enter Fund Industry
3.3.14 China UnionPay Signed a Memorandum of Collaboration with Development Bank of Singapore
3.3.15 Deutsche Bank Provides Renminbi Services to Individuals in Mainland China
3.3.16 ICBC Received Permission to Do Business in New York

Chapter Four: Operating Performance of China's Banking Industry
4.1 Banking Industry in General
4.1.1 Radical Change in Monetary Policies
4.1.2 Regulations on Banking Industry Becomes Stricter
4.1.3 Net Interest Gap will Reduce in Banking Industry
4.1.4 Concern Rises over Quality of Bank Credit Assets

4.2 Performance of Joint-stock Banks in General
4.2.1 Shenzhen Development Bank
4.2.2 Pudong Development Bank
4.2.3 China Merchants Bank
4.2.4 Minsheng Banking
4.2.5 Industrial Bank of China
4.2.6 Citic Bank

4.3 Performance of Urban Commercial Banks in General
4.3.1 Bank of Nanjing
4.3.2 Bank of Beijing

4.4 Performance of State Banks in General
4.4.1 Industrial and Commercial Bank of China
4.4.2 Bank of China
4.4.3 China Construction Bank
4.4.4 Bank of Communications

Figures and Tables:

- Amount of Deposits in Renminbi in China's Financial Institutions 09/2007-09/2008
- YoY Rate of Increase for Corporate and Individual Deposits in China 09/2007-09/2008
- Amount of Loans in Renminbi of China's Financial Institutions 09/2007-09/2008
- YoY Rate of Increase for Loans of Different Terms in China 09/2007-09/2008
- Increase of Loans in Renminbi of China's Financial Institutions 09/2007-09/2008
- YoY Rate of Increase for M0, M1, and M2 in China 09/2007-09/2008
- Categories of Terms of Interbank Lending in China in the First Three Quarters of 2008
- Trend of Weighted Average Interest Rates of Interbank Lending and Buybacks in China 09/2007-09/2008
- Use of Renminbi Funds in China's Financial Institutions 01-09/2008
- Total Assets and Total Liabilities of China's Financial Institutions by the End of the Third Quarter 2008
- Shares of China's Financial Institutions in Total Financial Assets by the End of the Third Quarter 2008
- Total Assets and Total Liabilities of China's State Banks by the End of the Third Quarter of 2008
- Total Assets and Total Liabilities of China's Joint-stock Banks by the End of the Third Quarter of 2008
- Total Assets and Total Liabilities of China's Urban Commercial Banks by the End of the Third Quarter of 2008
- Non-performing Loans of China's Commercial Banks in the First Three Quarters of 2008
- Non-performing Loans of China's Financial Institutions in the First Three Quarters of 2008
- Lehman Brothers-Related Assets Held by China's Listed Banks
- Major Financial Indicators of Shenzhen Development Bank in the First Three Quarters of 2008
- Major Financial Indicators of Pudong Development Bank in the First Three Quarters of 2008
- Major Financial Indicators of China Merchants Bank in the First Three Quarters of 2008
- Major Financial Indicators of China Minsheng Bank in the First Three Quarters of 2008
- Major Financial Indicators of Industrial Bank Co., Ltd. in the First Three Quarters of 2008
- Major Financial Indicators of Citic Bank in the First Three Quarters of 2008
- Major Financial Indicators of Bank of Nanjing in the First Three Quarters of 2008
- Major Financial Indicators of Bank of Beijing in the First Three Quarters of 2008
- Major Financial Indicators of Industrial and Commercial Bank of China in the First Three Quarters of 2008
- Major Financial Indicators of Bank of China in the First Three Quarters of 2008
- Major Financial Indicators of China Construction Bank in the First Three Quarters of 2008
- Major Financial Indicators of Bank of Communications in the First Three Quarters of 2008

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