POL214Y1 Lecture Notes - Stock Market, Wealth Management, Shadow Banking System
25 Feb 2014
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Equitized commercial banks (operate at the national level) Majority of its shares are non-tradable, held by central bank of china (meaning 50 % owned by government due to reforms in the 90"s half given to non-govt entities). This raises questions about the degree of government control. The results of making them independent of the government: loan allocation still very much controlled by govt. Undercover development bank of china supports agriculture. China export import bank financial services for export and imports such as technology. Policy banks that issues loans and aids to other countries (ie. africa) to fulfill state objectives (get certain countries to switch allegiance from taiwan to mainland china) Local banks = cb commercial banks (largest) city commercial banks struggled to compete with larger banks because they are backed up by local banks. Due to past ties with govt they benefit from being chosen by govt to manage pension plans etc.
