Abstract
The report "China Banking Sector (2007-2011)" by RNCOS provides an extensive
research on the booming banking industry of the fast growing China. The report
talks about the various aspects of banking industry in the country, like
industry performance, banking services, product quality, growth opportunities,
and future prospects.
The forecast given in this report is not based on a complex economic model,
but is intended as a rough guide to the direction in which the market is
likely to move. Rather, industry' s past performance and effect of growth
fuelling forces on it have been taken into account to judge the future course
of direction of the industry.
The report also covers a complete analysis of types of banks in China. Apart
from that, the market for debit and credit cards, ATMs, assets, and
liabilities of the China' s banking industry, coupled with their future
prospects is also discussed in the report.
Market Analysis
As an important component to the country' s overall economic system, the
China' s banking industry has seen rapid growth in line with the economic
development of the People' s Republic of China (PRC). Banks have historically
been, and continue to be, a significant source of capital for the economy and
the primary choice for domestic savings. The Chinese banking sector comprises
broad categories of banking institutions, namely joint stock commercial banks,
urban commercial banks, urban credit cooperatives, rural credit cooperatives,
foreign-invested commercial banks and other financial institutions.
As of the year 2006 end, the total assets of the China' s banking sector
amounted to Yuan 43.95 Trillion (US$ 5.812 Trillion), an increase of Yuan
16.31 Trillion (US$ 2.16 Trillion) from 2003. During the same period, the
total liabilities of the banking sector reached Yuan 41.71 Trillion (US$ 5.516
Trillion), an increase of Yuan 15.14 Trillion (US$ 2.0 Trillion).
All the market values have been converted to US$ at August 2007 exchange rate,
where US$ 1 = Yuan 7.56150 or Yuan 1 = US$ 0.132249.
Key Findings of the Report
- The Chinese government will issue fresh licenses to financial institutions
for managing corporate pension fund. At the end of 2006, the corporate pension
fund industry of China was recorded at Yuan 91 Billion (US$ 12.0 Billion).
- New opportunities for the Chinese banking sector lies in the debit and
credit card industry and rural banking services since the government is
supporting these in a major way.
- Housing loan of the Chinese banking sector is growing with a CAGR of
19.86% for the time period 2004-2006.
- The retail e-commerce sales of China are anticipated to increase at a CAGR
of 17.45% from 2006 to 2010.
- Bankable household of China is expected to grow with a CAGR of 29.23%
during the timeframe 2007-2011.
Key Issues & Facts
- What were the total deposits of Chinese banking institutions from
2003-2006?
- Where does the total loans of Chinese banking institutions stood during
2003-2006?
- What is the status of Chinese rural banking services in terms of lending
and government support?
- What was the Capital Adequacy Ratio of Chinese banks from 2003-2006?
- Mobile banking as the future of Chinese banking sector.
Key Players
The key players section analyses different banking players operating in the
market and gives their business description and key financial information. It
includes Industrial & Commercial Bank of China, Agricultural Bank of China,
China Construction Bank and China Merchants Bank Co. Ltd.
Research Methodology Used
Information Sources
Information has been sourced from various credible sources namely, books,
newspapers, trade journals, and white papers, industry portals, government
agencies, trade associations, monitoring industry news and developments, and
through access to more than 3000 paid databases.
Analysis Method
The analysis methods include ratio analysis, historical trend analysis, linear
regression analysis using software tools, judgmental forecasting, and cause
and effect analysis.
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