Facing the WTO Accession: Strengthen China's Banking Industry ----From the Evidence of Chinese Banking Problems

Introduction chinas ambitious efforts to reform and restructure the avering system began in animated in 1998 and are accelerating rapidly as the summation to the being Trade Organization (WTO) become true. This pace reflects the intentness diversity that WTO membership promises as restrictions are removed and Chinas banks are subjected to great disputation from foreign institutions with developed skills and capabilities, advanced entropy technology, high-octane processing and superior forethought expertise with mart economies. consort to an industry source, the lending business in China is expect to grow by 40% annually in the decennary after entry into the WTO. This tremendous potential and result competition represents the opportunity and challenges the domestic banks face. Facing challenge, Chinas banking industry must(prenominal) be recognize that managing inherited nonperforming loans (NPLs) and overcoming antiquated business models, policies, procedures, syst ems and foot are critical to meeting the demands of an increasingly competitive market. This ledger entry accounts on the almost popular flunk that exists in the bank industry and offer a systematic recommendations to improve it . 1.0 The weakness of Chinese banks 1.1 Non-performing loans, weak capital base and moo profitability NPLs are know as one of the most serious balance-sheet problems facing Chinese banks in recent years, still the exact figure of replete(p) NPLs in Chinas banking sector is still unknown. In 1999,the authorities proposed a solution of debt-to-equity swap to deal with this issue, i.e., to throw asset management companies (AMCs)to take over the existing NPLs of quartette wholly-state-owned banks, and to let AMCs to determine NPLs as far as manageable ,with AMCs acting in the main as owners of equity assets. In 2000, the upper limit for the quartet AMCs to take over NPLs from the four banks was set at 1.3 one thousand million Yuan, which was h omogeneous to about 15 percent of chinas GDP! . If you want to foreshorten a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper