Corporate Governance in Banking and Economic Performance - Future Options for People’s Republic of China
Ferri, Giovanni | August 2003
Abstract
Enhancing the corporate governance of banks in PRC requires looking at the overarching progress of the transition to a market economy. The landscape of the Chinese economic structure has been transformed after a quarter century of economic reform. As it stands now, 70 per cent of GDP is contributed by the non-state sector, where a major wave of new unfettered capitalists emerged. Nevertheless, the continued involvement of the government has created severe agency problems, particularly through the sick relationship between State Owned Enterprises (SOEs) and State Owned Commercial Banks (SOCBs), two segments of the Chinese economy where the gradualist approach didn’t fasten adequate structural adjustment thus loading unbearable amounts of NPLs at banks. The role of the government in the economy will have to evolve from the previous “owner and player” in the economy to that of “rule-setter and regulator”. To reflect this reality, political interference in the banking sector should be cut off. We argue that ownership diversification represents an effective first step in the direction of improving the corporate governance of banks in PRC with the long-term goal of reducing the ownership role of the central government in the banking sector.
Citation
Ferri, Giovanni. 2003. Corporate Governance in Banking and Economic Performance - Future Options for People’s Republic of China. © Asian Development Bank. http://hdl.handle.net/11540/3591. License: CC BY 3.0 IGO.Keywords
Regional Development Finance
Public Scrutiny of City Finances
Non-Bank Financial Institutions
Local Government Finance
Government Financial Institutions
Foreign and Domestic Financing
Financial Risk Management
Assessing Corporate Governance
Good Governance
Governance Approach
Public Accounting
Business Financing
Subsidies
Social Equity
Economic Equity
Project Risks
Project Impact
Public Administration
Corporations
Investment Requirements
Banks
|Taxing power
Tax administration and procedure
Tax policy
Effect of taxation on labor supply
Decentralization in government
Community power
Corporate divestment
Civil government
Delegation of powers
Equality
Neighborhood government
Subnational governments
Delivery of government services
Show allCollapse
Citable URI
http://hdl.handle.net/11540/3591Metadata
Show full item recordRelated items
-
How Much Has People Empowerment Progressed among Small Farmers and Fisherfolk? State of People’s Organizations in the Philippines
Songco, Danilo A. (Philippine Institute for Development Studies, 2022-02-28)This is an attempt to quantify government’s performance in empowering small farmers and fishers following the provisions of AFMA. It establishes four dimensions of empowerment that may be used to measure empowerment and presents some evidence of how government has performed under each of these dimensions. It concludes that government has been on track in following AFMA’s prescriptions for SFF ...This is an attempt to quantify government’s performance in empowering small farmers and fishers following the provisions of AFMA. It establishes four dimensions of empowerment that may be used to measure empowerment and presents some evidence of how ... -
The Impact of ACFTA on People’s Republic of China–ASEAN Trade: Estimates Based on an Extended Gravity Model for Component Trade
Sheng, Yu; Tang, Hsiao Chink; Xu, Xinpeng (Asian Development Bank, 2012-07-01)This paper uses an extended gravity model to shed light on the impact of the free trade area agreement between the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China (PRC) on the members‘ trade flows and trade patterns. New determinants that capture the rising importance of global production sharing and intraregional trade in parts and components in East Asia are ...This paper uses an extended gravity model to shed light on the impact of the free trade area agreement between the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China (PRC) on the members‘ trade flows and trade patterns. ... -
The Rise of the “Redback” and the People’s Republic of China’s Capital Account Liberalization: An Empirical Analysis of the Determinants of Invoicing Currencies
Ito, Hiro; Chinn, Menzie (Asian Development Bank Institute, 2014-04-07)We investigate the determinants of currency choice for trade invoicing in a cross-country context while focusing on the link between capital account liberalization and its impact on the use of the renminbi (RMB). We find that while countries with more developed financial markets tend to invoice less in the US dollar, countries with more open capital accounts tend to invoice in either the euro or ...We investigate the determinants of currency choice for trade invoicing in a cross-country context while focusing on the link between capital account liberalization and its impact on the use of the renminbi (RMB). We find that while countries with more ...