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1990s Chinese Bank Restructurings
Throughout the 1990s, China's banking system underwent systemic restructurings. The Chinese government took several major steps to recapitalize its banks and to reduce non-performing loans (NPLs). Overview Like many of the countries directly affected by the 1997 Asian Financial Crisis The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998–1 ..., Chinese bank NPLs grew substantially (with some estimates reaching as high as 42% of the big four banks' loan balance). This forced Chinese authorities to establish asset management companies (AMCs) in order to purchase NPLs and affect a bank recapitalization. Economists suggest that the effective recapitalization of the big four banks might not be as large as the headline NPL number would suggest and they also criticize that the PBOC's balance ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Non-performing Loan
A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as it reduces the profitability of banks, and is often presented as preventing banks from lending more to businesses and consumers, which in turn slows down economic growth (although this theory is disputed). In the European Union, the management of the NPLs resulting of the global financial crisis of 2008 has become a politically sensitive topic, culminating in 2017 with the decision by the Council to task the European Commission to launch an action plan to tackle NPLs. The action plan supports the fostering of a secondary market for NPLs and the creation of Asset Management Companies (aka bad bank). In December 2020, this action plan was revised in the wake of the Covid19 pandemic crisis. Definition Non-performing loans are generally recognised as per the following criteria: * Pay ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1997 Asian Financial Crisis
The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998–1999 was rapid and worries of a meltdown subsided. The crisis started in Thailand (known in Thailand as the '' Tom Yam Kung crisis''; th, วิกฤตต้มยำกุ้ง) on 2 July, with the financial collapse of the Thai baht after the Thai government was forced to float the baht due to lack of foreign currency to support its currency peg to the U.S. dollar. Capital flight ensued almost immediately, beginning an international chain reaction. At the time, Thailand had acquired a burden of foreign debt. As the crisis spread, most of Southeast Asia and later South Korea and Japan saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt. South Korea, Indonesia and Thailan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Big Four (banking)
The Big Four (or Big 4) is the colloquial name given to the four main banks in several countries where the banking industry is dominated by just four institutions and where the phrase has thus gained relevance. Some countries include more or less institutions in such rankings, leading to other names such as Big Three, Big Five, or Big Six. International use Internationally, the term "Big Four Banks" has traditionally referred to the following central banks: * The Bank of England * The Federal Reserve * The Bank of Japan * The European Central Bank Australia In Australia, the "big four banks" refers to the four largest banks who have traditionally dominated Australia's banking industry in terms of market share, revenue and total assets. The "big four banks" of Australia are: * Australia and New Zealand Banking Group * Commonwealth Bank (owned by the Australian Government until 1996) * National Australia Bank * Westpac A longstanding policy of the Federal Government in Austra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Asset Management In China
Asset management companies in China came into being in 1998. The founding of commercial Asset management companies (AMC; ) established by the Ministry of Finance tasked with professionally managing third-party assets was a major landmark in the development of China's financial system. It marks a transition in Chinese regulation away from an unregulated environment toward a system where specialist companies started to operate according to a defined set of standards and regulations. The Chinese government created 10 AMCs in China. 4 as bad banks, one for each of the four commercial state-owned banks. and 6 Fund management companies. As of 2018 there are over 130 asset management companies in china, with a combined 2 billion USD in assets under management. The original asset management companies include: * China Great Wall Asset Management - for the Agricultural Bank of China * China Orient Asset Management - for the Bank of China * China Huarong Asset Management - for the Industria ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
People's Bank Of China
The People's Bank of China (officially PBC or informally PBOC; ) is the central bank of the People's Republic of China, responsible for carrying out monetary policy and regulation of financial institutions in mainland China, as determined by the People's Bank Law and the Commercial Bank Law. It is a cabinet-level executive department of the State Council. History The bank was established on December 1, 1948, based on the consolidation of the Huabei Bank, the Beihai Bank and the Xibei Farmer Bank. The headquarters was first located in Shijiazhuang, Hebei, and then moved to Beijing in 1949. Between 1950 and 1978 the PBC was the only bank in the People's Republic of China and was responsible for both central banking and commercial banking operations. All other banks within Mainland China such as the Bank of China were either organized as divisions of the PBC or were non-deposit taking agencies. From 1952 to 1955 government shares were added to private banks to make state-p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Banking In China
China's banking sector had () in assets at the end of 2020. The "big four/five" state-owned commercial banks are the Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China, and the Agricultural Bank of China, all of which are among the largest banks in the world . The Bank of Communications is sometimes included. Other notable big and also the largest banks in the world are China Merchants Bank and Ping An Bank. History Chinese financial institutions conducted all major banking functions, including the acceptance of deposits, the making of loans, issuing notes, money exchange, and long-distance remittance of money by the Song Dynasty (960-1279). In 1024, the first paper currency was issued by the state in Sichuan. The two major types of indigenous Chinese financial institutions, () and (), more often cooperated than competed in China's financial market. Due to structural weaknesses of traditional Chinese law, Chinese financial institu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
