Business in China / Banking System
China contains different types of banks that range from: “State-owned banks” to “Policy banks”, to “Regional banks”, “Co-operative banks”, “Shareholding banks”, “Private banks” and “Investment banks”.
China’s banking hierarchy starts at the top with the four state-owned banks: the “Bank of China” (BOC), the “Industrial and Commercial Bank of China” (ICBC), “China Construction Bank” (CCB) and the “Agricultural Bank of China” (ABC).
The People’s Bank of China (PBOC) serves as the regulatory authority, directly below the four state-owned commercial banks. Within the PBOC, there are two special divisions responsible for foreign banking operations in China.
The Bank of China (BOC) Is China’s main international organization. It has an extensive network of branches in China and Overseas. The bank’s major activities are: Commercial banking, interbank deposits and loans, purchase and sale of gold and foreign currencies, participation in international loan and issuance of bonds in the international market.
The Industrial and Commercial Bank of China (ICBC) Has a network of over 28,000 branches across China and an investment banking subsidiary in Hong Kong.
China Construction Bank (CCB) Specializes in handling China’s capital construction investments, including large-scale technical transformation projects.
Agricultural Bank of China (ABC) Is responsible for the development of the agricultural and rural economy, and manages funds allocated for agriculture by the central government. It provides banking services to rural businesses and individuals.
Beneath the four state-owned banks, there are three policy banks: the “China Development Bank”, the “Export- Import Bank of China” and the “Agricultural Bank of China”.
China contains a wide range of Regional banks. One of the biggest regional banks in china is “Pudong Development Bank”.
Also, there are Co-operative Banks, as there were 3,000 urban and 50,000 rural credit co-operatives which have gradually merged into banks. Like: Shanghai City United Bank that was created from 99 urban co-operatives.
China contains “Second Tier State Banks” (Shareholding Banks), these banks are jointly stock banks, that have private shares owned by government or private entities.
Furthermore, there are “Private Banks”, like: “China Minsheng Bank”.
China has “Investment Banks”, “China International Capital Corporation” (CICC). It’s the only real international investment bank in China.